Bright Bulbs Electric Company provides $$6,000$ worth of services to customers on account during the month. Experience suggests that about $2\%$ of net credit sales will not be paid. To record the potential bad debts, the company should:

Multiple Choice

debit bad debt expense $$120$; credit the allowance for doubtful accounts $$120.$

debit accounts receivable $$120$; credit the allowance for doubtful accounts $$120.$

debit the allowance for doubtful accounts $$120$; credit bad debt expense $$120.$

debit bad debt expense $$120$; credit accounts receivable $$120.$