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Tanning Company analyzes its receivables to estimate bad debt expense

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Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $270,000 and credit care $1,000,000. An aging of accounts receivable shows that approximately 3% of the outstanding receivables will be collectible. What adjusting entry will Tanning Company make it the Allowance for Doubtful Accounts has a credit balance of $2,400 before adjustment? a Bad Debt Expense 6,700 Allowance for Doubtful Accounts 6,700 b. Bad Debt Expense 5,700 Allowance for Doubtful Accounts 5,700 Bad Debt Expense 4,700 Allowance for Doubtful Accounts d. Bad Debt Expense 5,200 Allowance for Doubtful Accounts 5,200 4,700