During Year 1, Kylie Department Store had total sales of $1,500,000, of which 60% were on credit. During the year, $500,000 cash was collected on credit sales. The beginning balance in Accounts Receivable (on January 1 of Year 1) was $82,500. The beginning balance in the Allowance for Bad Debts (on January 1 of Year 1) was $10,000. The amount of accounts written off as uncollectible during the year was $13,500. Management uses the **percentage of sales method** and estimates that 4% of credit sales will ultimately be uncollectible. Which ONE of the following is included in the adjusting journal entry necessary at the end of the year to record **bad debt expense** for the year? A DEBIT to Accounts Receivable for $36,000. A CREDIT to Accounts Receivable for $36,000. A DEBIT to Allowance for Bad Debts for $36,000. A CREDIT to Bad Debt Expense for $36,000. A DEBIT to Bad Debt Expense for $36,000. O A CREDIT to Cash for $36,000