A Company was preparing its year end financials and preparing adjusting entries. Estimated uncollectible if based on Receivables: 7% of Accounts Receivable The company chose to use the Balance Sheet approach to account for bad debt expense. Additional information was provided: .Accounts Receivable at year end Credit Sales during the year Allowance for Doubtful Account $ 890,000 $1,200,400 $ 12,500 [Debit Balance before adjustment] Based on the data provided and the company's decision to use the Balance Sheet approach, which adjusting journal entry is correct? Bad Debt Expense Allowance for Doubtful Accounts $62,300 $62,300 Bad Debt Expense $60,020 Allowance for Doubtful Accounts $60,020 Bad Debt Expense $87,300 Allowance for Doubtful Accounts $87,300 Bad Debt Expense $85,020 Allowance for Doubtful Accounts $85,020 None of the above