Answer:A. Bad debt account$9600, Allowance for doubtful account $9600
Step-by-step explanation:
4% of the receivable of $320,000 gives $12800. This means the provision will be increased by $9600 to take care of the under provision at the beginning of the year .
The new year provision will show a balance of 12800 and sum of $9600 will be used to reduce the receivable.