A company uses the percent of sales method to estimated Bad Debts expense. At the end of the year the following information is given Sales $400.000 Sales on Credit $300,000 Allowance for doubtful Accounts 5,000 credit balance The company expects 0.9% of the credit sales to be uncollectible. After preparing the journal entry to record bad debts expense what is the balance in the Allowance for Doubtful Accounts? Multiple Choice $2.700 57000 $27,000 $7700