d.S442,000 2. Valli Company uses the percentage of sales method for recording bad debts expense. For the year, cash sales are $700,000 and credit sales are that 1% is the sales percentage to use. What adjusting entry will Valli Company make to record the bad debts expense? a. Bad Debt Expense $2,500,000. Management estimates 32,000 32,000 Allowance for Doubtful Accounts b. Bad Debt Expense 25,000 Allowance for Doubtful Accounts 25,000 c. Bad Debt Expense 25,000 25,00 Accounts Receivable 32,000 d. Bad Debt Expense 32,00 Accounts Receivable