A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the companys unadjusted trial balance reported the following selected amounts: Accounts receivable $ 345,000 debitNet Sales 790,000 creditAll sales are made on credit. Based on past experience, the company estimates 0.6% of net sales to be uncollectible. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?Multiple ChoiceDebit Bad Debts Expense $2,770; credit Allowance for Doubtful Accounts $2,770.Debit Bad Debts Expense $4,740; credit Allowance for Doubtful Accounts $4,740.Debit Bad Debts Expense $5,440; credit Allowance for Doubtful Accounts $5,440.Debit Bad Debts Expense $4,040; credit Allowance for Doubtful Accounts $4,040.Debit Bad Debts Expense $2,070; credit Allowance for Doubtful Accounts $2,070.