Cosmos Company uses the percentage of sales method for recording bad debts expense. For the year, cash sales are $700,000 and credit sales are $2,500,000. Management estimates that 1% is the sales percentage to use. What adjusting entry will Cosmos Company make to record the bad debts expense Select one a. Bad Debt Expense 32,000 O Accounts Receivable 32,000 b. Bad Debt Expense 32,000 O Allowance for Doubtful Accounts 32,000 c. Bad Debt Expense 25,000 O Allowance for Doubtful Accounts 25,000 d. Bad Debt Expense 25,000 O Accounts Receivable 25,000 Under the allowance method, no attempt is made to match bad debts expense to sales revenues in the same accounting period Select one a. FALSE O b. TRUE O