A company has $$80,000$ in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that $6\%$ of outstanding receivables are uncollectible. The current credit balance $($before adjustments$)$ in the allowance for doubtful accounts is $$1,200.$ The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for $$4,800.$

True or False