Blazer Company has outstanding Accounts Receivables of $1,000,000 on December 31 based on Credit Sales of $3,000,000 for the year. Rich Carvajal, Chief Accountant at Blazer, estimates that 5% of their receivables will be uncollectible. He also determines that the Allowance for Doubtful Accounts has a $7,000 credit balance on December 31 prior to any adjustments. On March 1, Blazer determines that a $5,000 account owed by GTech Corp will be uncollectible.

If Blazer uses the Allowance Method to account for bad debts based on percent of receivables, their March 1 entry to dispose of GTech's uncollectible account will include which of the following?

5000 debit to bad debt expense

5000 credit to bad debt expense

5000 debit to account receivable - Gtech

43000 credit to allowance for doubtful accounts

some other answer