Leonard Company uses the allowance method for recording bad debts expense. The accounts receivable balance is $$500,000$ and sales revenue for the year was $$2,500,000.$ Management estimates that $2\%$ of accounts receivable will be uncollectible. What adjusting entry will Leonard Company make if the Allowance for Doubtful Accounts has a credit balance of $$2,000$ before adjustment?

debit Bad Debt Expense $10,000$; credit Accounts Receivable $10,000.$

debit Allowance for Doubtful Accounts $6,000$; Bad Debt Expense $6,000.$

debit Bad Debt Expense $9,000$; Cash $9,000.$

debit Bad Debt Expense $8,000$; Allowance for Doubtful Accounts $8,000$