Jefferson uses the percent of sales method of estimating uncollectible expenses. Based on past history, 2% of credit sales are expected to be uncollectible. Sales for the current year are $5,550,000. Which of the following is correct regarding the entry to record estimated uncollectible receivables?

Accounts Receivable will be debited

Cash will be debited

Bad Debt Expense will be credited

Allowance for Doubtful Accounts will be credited