Assume the following unadjusted account balances at the end of the accounting period Johanna Company: Account Receivable, $100,000; Allowance for Doubtful Accounts, $1, 400 (debit balance); and Net sales, $1, 200,000. If Johanna's past experience indicates credit losses of 1% of net sales, the adjusting entry to estimate doubtful accounts is: Bad Debts Expense 12,000 Accounts Receivable 12,000 Bad Debts Expense 10, 600 Allowance for Doubtful Accounts 10, 600 Bad Debts Expense 13, 400 Allowance for Doubtful Accounts 13, 400 Bad Debts Expense 12,000 Allowance for Doubtful Accounts 12,000