Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $366,000 and credit sales are $1,000,000. An aging of accounts receivable shows that approximately 8% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if Allowance for Doubtful Accounts has a credit balance of $2,400 before adjustment? a. Bad Debt Expense $25,880 Allowance for Doubtful Accounts $25,880 b. Bad Debt Expense $26,880 Allowance for Doubtful Accounts $26,880 c. Bad Debt Expense $27,880 Allowance for Doubtful Accounts $27,880 d. Bad Debt Expense $26,380 Allowance for Doubtful Accounts $26,380
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