Consider the following facts for Company B: At December 31, 2014, the trial balance showed the following balances: Accounts Receivable = $280,000 debit balance Allowance for Doubtful Accounts = $1,500 credit balance Sales Revenue = $650,000 credit balance Additional information: - An aging schedule indicates that $12,500 of accounts receivable will be uncollectible. - Company A estimates that 2% of sales will be uncollectible. Which of the following statements is true about the adjusting entry for Bad Debt Expense at December 31, 2014?