Assume the Following Unadjusted Account Balances at the End of the Accounting

Assume the following unadjusted account balances at the end of the accounting period for Margarete Company: Accounts Receivable, $100,000; Allowance for Doubtful Accounts, $1,400 (debit balance) ; and Net sales, $1,200,000.
If Margarete's past experience indicates credit losses of 1% of net sales, the adjusting entry to estimate doubtful accounts is:

A) Bad Debts Expense 12,000
$\quad$ $\quad$ $\quad$ $\quad$ Accounts Receivable 12,000
B) Bad Debts Expense 10,600
$\quad$ $\quad$ $\quad$ $\quad$ Allowance for Doubtful Accounts 10,600
C) Bad Debts Expense 13,400
$\quad$ $\quad$ $\quad$ $\quad$ Allowance for Doubtful Accounts 13,400
D) Bad Debts Expense 12,000
$\quad$ $\quad$ $\quad$ $\quad$ Allowance for Doubtful Accounts 12,000