River Forest, Inc $\quad$ $\quad$ $\quad$ $\quad$

River Forest, 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. River Forest estimated that 2% of current balances and 15% of past-due balances will prove uncollectible.
The adjusting entry to record credit losses is:

A) Bad Debts Expense 5,800
$\quad$ $\quad$ $\quad$ $\quad$ Allowance for Doubtful Accounts 5,800
B) Bad Debts Expense 4,600
$\quad$ $\quad$ $\quad$ $\quad$ Allowance for Doubtful Accounts 4,600
C) Bad Debts Expense 4,200
$\quad$ $\quad$ $\quad$ $\quad$ Accounts Receivable 4,200
D) Bad Debts Expense 7,400
$\quad$ $\quad$ $\quad$ $\quad$ Allowance for Doubtful Accounts 7,400