Hahn company uses the percentage of sales method for recording bad debts expense. For the year, cash sales are $500,000 and credit sales are $2,000,000. Management estimates that 1% is the sales percentage to use. What adjusting entry will Hahn company make to record the bad debts expense? a bad debts expense 25,000 accounts receivable 25,000 b bad debts expense 25,000 allowance for doubtful accounts 25,000 c bad debts expense 20,000 allowance for doubtful accounts 20,000 d bad debts expense 20,000 accounts receivable 20,000