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 Emmie Company: Accounts Receivable, $300,000; Allowance for Doubtful Accounts, $4,200 (debit balance) ; and Net sales, $3,600,000.
If Emmie's past experience indicates credit losses of 1% of net sales, the adjusting entry to estimate doubtful accounts is:

A) Bad Debts Expense 36,000
$\quad$ $\quad$ $\quad$ $\quad$ Accounts Receivable 36,000
B) Bad Debts Expense 31,800
$\quad$ $\quad$ $\quad$ $\quad$ Allowance for Doubtful Accounts 31,800
C) Bad Debts Expense 40,200
$\quad$ $\quad$ $\quad$ $\quad$ Allowance for Doubtful Accounts 40,200
D) Bad Debts Expense 36,000
$\quad$ $\quad$ $\quad$ $\quad$ Allowance for Doubtful Accounts 36,000