Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $384,000 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 the Allowance for Doubtful Accounts has a credit balance of $2,000 before adjustment? a. Bad Debt Expense 29,720 Allowance for Doubtful Accounts 29,720 b. Bad Debt Expense 28,720 Allowance for Doubtful Accounts 28,720 c. Bad Debt Expense 27,720 Allowance for Doubtful Accounts 27,720 d. Bad Debt Expense 28,220 Allowance for Doubtful Accounts 28,220