Please answer with detailed explanation else downvote.

Ryan Leaf Company uses the percentage-of-receivables method for recording bad debts expense. The accounts receivable balance is $60,000 at year-end and the total credit sales were $2,300,000 for the year. Management estimates that 3% of receivables will be uncollectible. What adjusting entry should be made if the Allowance for Doubtful Accounts has a credit balance of $200 before adjustment? O Bad Debts Expense 1,800 Allowance for Doubtful Accounts 1,800 O Bad Debts Expense 1,600 Allowance for Doubtful Accounts 1,600 O Bad Debts Expense 1,600 Accounts Receivable 1,600 O Allowance for Doubtful 1,800 Accounts Bad Debt Expense 1,800