Utopia Corporation provides $6,000 worth of lawn care on account during the month. Experience suggests that about 3% of net credit sales will not be collected. To record the potential bad debts, Utopia Corporation would debit:
A. Bad Debt Expense and credit Accounts Receivable for $180.
B. Accounts Receivable and credit Allowance for Doubtful Accounts for $180.
C. Bad Debt Expense and credit Allowance for Doubtful Accounts for $180.
D. Allowance for Doubtful Accounts and credit Bad Debt Expense for $180.
Answer: C
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