At December 31, Folgeys Coffee Company reports the following results for its calendar year. Cash sales Credit sales $ 900,000 300,000 Its year-end unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $ 125,000 debit 5,000 debit Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (1) 3% of credit sales, (2) 1% of total sales and (3) 6% of year-end accounts receivable. X Answer is complete but not entirely correct. No Transaction General Journal Debit Credit A 1 Bad debts expense 45,000 X Allowance for doubtful accounts 45,000 B 2 Bad debts expense 60,000 X Allowance for doubtful accounts 60,000 C 3 Bad debts expense 12,500 Allowance for doubtful accounts 12,500