An aging of a company's accounts receivable indicates that $12,000 is estimated to be uncollectible. If Allowance for Doubtful Accounts has a $3,400 debit balance, the adjustment to record bad debts for the period will require a
a) Credit to Bad Debts Expense for $15,400.
b) Debit to Bad Debts Expense for $15,400.
c) Credit to Allowance for Doubtful Accounts for $8,600.
d) Debit to Allowance for Doubtful Accounts for $15,400.