Hockey, Inc $\quad$ $\quad$ $\quad$ $\quad$ Allowance for Doubtful Accounts 17,400
B) Bad Debts Expense 13,800

Hockey, Inc.'s $540,000 Accounts Receivable balance at December 31 consisted of $480,000 current balances and $60,000 past-due balances. At December 31, the Allowance for Doubtful Accounts had a credit balance of $4,800. Hockey, Inc. 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 17,400
$\quad$ $\quad$ $\quad$ $\quad$ Allowance for Doubtful Accounts 17,400
B) Bad Debts Expense 13,800
$\quad$ $\quad$ $\quad$ $\quad$ Allowance for Doubtful Accounts 13,800
C) Bad Debts Expense 12,600
$\quad$ $\quad$ $\quad$ $\quad$ Accounts Receivable 12,600
D) Bad Debts Expense 22,200
$\quad$ $\quad$ $\quad$ $\quad$ Allowance for Doubtful Accounts 22,200