Penn Inc Reported an Allowance for Bad Debts of $30,000 (Debit)

Penn Inc. reported an allowance for bad debts of $30,000 (debit) at December 31, before performing an aging of accounts receivable. As a result of the aging, Penn Inc. determined that an estimated $52,000 of the December 31, accounts receivable would prove uncollectible. The adjusting entry required at December 31, would be

A)
$\begin{array}{lr}\text { Bad Debt Expense } & 52,000 \\\text { Allowance for Bad Debts } & 52,000\end{array}$
B)
$\begin{array}{cr}\text { Allowance for Bad Debts } & 52,000 \\\text { Accounts Receivable } & 52,000\end{array}$
C)
Bad Debt Expense $\quad 82,000$
Allowance for Bad Debts $\quad 82,000$
D)
$\begin{array}{lr}\text { Allowance for Bad Debts } & 82,000 \\\text { Bad Debt Expense } & 82,000\end{array}$