A Company Has $90,000 in Outstanding Accounts Receivable and It

Multiple Choice

A company has $90,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 4% of outstanding receivables are uncollectible.
-The current balance (before adjustments) in the allowance for doubtful accounts is an $800 credit. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for:

A) $3,568
B) $4,400
C) $3,632
D) $3,600
E) $2,800