Oakpark, Inc.'s $180,000 Accounts Receivable balance at December 31 consisted of $160,000 current balances and $20,000 past-due balances. At December 31, the Allowance for Doubtful Accounts had a credit balance of $1,600. Oakpark estimated that 2% of current balances and 15% of past-due balances will prove uncollectible.

The adjusting entry to record credit losses is:
Select one:
A.
Bad Debts Expense
5,800

Allowance for Doubtful Accounts

5,800

B.
Bad Debts Expense
4,600

Allowance for Doubtful Accounts

4,600

C.
Bad Debts Expense
4,200

Accounts Receivable

4,200

D.
Bad Debts Expense
7,400

Allowance for Doubtful Accounts

7,400

B.
Bad Debts Expense
4,600

Allowance for Doubtful Accounts

4,600