The Allowance for Bad Debts Account Has a Credit Balance

The Allowance for Bad Debts account has a credit balance of $8,700 before the adjusting entry for bad debts expense.After analyzing the accounts in the accounts receivable subsidiary ledger using the aging-of-receivables method,the company's management estimates that uncollectible accounts will be $15,000.What will be the balance of the Allowance for Bad Debts reported on the balance sheet?

A) $15,000
B) $6,300
C) $23,700
D) $13,500