Arab Company uses the percentage of receivables method for recording bad debt expense. End of the year accounts receivable are $130000, and the allowance account has a $4000 credit balance Management estimates that 4% accounts receivable will be uncollectible. What adjusting entry will Arab Company make to record the bad debt expense? a. debit to Bad Debt Expense for $1200; credit to Allowance for Doubtful Accounts for $1200. b. debit to Bad Debt Expense for $5200; credit to Accounts Receivable for $5200. c. debit to Bad Debt Expense for $1200; credit to Accounts Receivable for $1200. d. debit to Bad Debt Expense for $9200; credit to Allowance for Doubtful Accounts for $9200