9 . Manning Company uses the percentage of receivables method for recording bad debts expense . The accounts receivable balance is $ 200,000 and credit sales are $ 1,000,000 . Management estimates that 5 % of accounts receivable will be uncollectible . What adjusting entry will Manning Company make if the Allowance for Doubtful Accounts has a credit balance of $ 2,000 before adjustment ?
a . Bad Debts Expense 10,000
10,000
Allowance for Doubtful Accounts
b . Bad Debts Expense 8,000
8,000
Allowance for Doubtful Accounts
c . Bad Debts Expense 8,000
8,000
Accounts Receivable d . Bad Debts Expense 10,000