following selected amounts are reported on the year-end unadjusted trial balance report for a company that uses the percent of sales thod to determine its bad debts expense. counts Receivable $435,000 Debit et Sales 2.100,000 Credit Isales are made on credit. Based on past experience, the company estimates 1% of sales to be uncollectible. What adjusting entry should he company make at the end of the current year to record its estimated bad debts expense? Debit Bad Debts Expense $15,225; credit Allowance for Doubtful Accounts $15,225. Debit Bad Debts Expense $7,350; credit Allowance for Doubtful Accounts $7,350. Debit Bad Debts Expense $19.750; credit Allowance for Doubtful Accounts $19,750. Debit Bad Debts Expense $22.250; credit Allowance for Doubtful Accounts $22,250. Debit Bad Debts Expense $21,000; credit Allowance for Doubtful Accounts $21,000.