Williams Company's Accounts Receivable Account Has a Balance of $900,000

Williams Company's Accounts Receivable Account has a balance of $900,000, and the Allowance for Doubtful Accounts has a negative balance of $2,000 at the end of the year before adjustment. An analysis of their customers' accounts estimates that 2% of year end account receivable will be uncollectible.
The adjusting entry for doubtful accounts will include:

A) An increase to Bad Debt Expense $16,000
B) An increase to Allowance for Doubtful Accounts, $18,000
C) An increase to Bad Debt Expense $20,000
D) An increase to Allowance for Doubtful Accounts, $16,000