4 Siew Lan uses the allowance method to record bad debts expense. At the end of December, it is estimated that 2% of Siew Lan's accounts receivable will be uncollectable. Accounts receivable at 31 December are $300,000 and the Allowance for doubtful debts has a credit balance of $5,000. a. What is the journal entry needed to adjust the allowance for doubtful debts at the end of December? Dr Bad debts expense $6,000 Cr Allowance for Doubtful Debts $6,000 b. Dr Bad debts expense $1,000 Cr Allowance for Doubtful Debts $1,000 Dr Allowance for Doubtful Debts $6,000 Cr Bad Debts Expense $6,000 d. Dr Allowance for Doubtful Debts $1,000 Cr Bad debts expense $1,000 C. e. There is no need to adjust the allowance for doubtful debts