A company has $101,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 3% of outstanding receivables are uncollectible. The current balance before adjustments) in the allowance for doubtful accounts is an $910 debit. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for:
A. $3.940
B. $2,120
C. $3,030
D. None of these is correct
E. $910