Assume the following unadjusted account balances at the end of the accounting period for Johanna Company: Accounts 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: Debit Bad Debts Expense 10, 600 Credit Allowance for Doubtful Accounts 10, 600 Debit Bad Debts Expense 13, 400 Credit Allowance for Doubtful Accounts 13, 400 Debit: Bad Debts Expense 12,000 Credit Accounts Receivable 12,000 Debit Bad Debts Expense 12,000 Credit Allowance for Doubtful Accounts 12,000