Samson Corporation Had Sales of $1,000,000 During 2012, of Which

Samson Corporation had sales of $1,000,000 during 2012, of which 60 percent were on credit. On December 31, 2012, Accounts Receivable totaled $80,000, and Allowance for Bad Debts had a credit balance of $1,200. Given this information, if uncollectible receivables are estimated to be 3 percent of accounts receivable, the adjusting entry as of December 31, 2012, to account for bad debts would include a

A) Debit to Bad Debt Expense of $2,400
B) Debit to Bad Debt Expense of $3,600
C) Credit to Bad Debt Expense of $1,200
D) Credit to Allowance for Bad Debts of $1,200