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?

a. Bad Debt Expense under the Percentage of Receivable method will be greater than the Bad Debt Expense under the Percentage of Sales method by $1,000.

b. Bad Debt Expense under the Percentage of Receivable method will be less than the Bad Debt Expense under the Percentage of Sales method by $3,000.

c. None of these answers are correct

d. Bad Debt Expense under the Percentage of Receivable method will be less than the Bad Debt Expense under the Percentage of Sales method by $2,000.

e. Bad Debt Expense under the Percentage of Receivable method will be greater than the Bad Debt Expense under the Percentage of Sales method by $4,000.