Lick Company uses the percentage of receivables $($Aging$)$ method for recording bad debts expense. The Accounts Receivable balance is $$150,00$ and credit sales are $$750,000.$ Management estimates that $5\%$ of accounts receivable will be uncollectible. What adjusting entry will Manning Company make if the Allowance for Doubtful Accounts has a credit balance of $$3,000$ before adjustment?

a$.$ Bad Debts Expense

$7,500$

Allowance for Doubtful Accounts

$7,500$

b$.$ Bad Debts Expense

$4,500$

Allowance for Doubtful Accounts

$4,500$

c$.$ Bad Debts Expense

$5,000$

Allowance for Doubtful Accounts

$5,000$

d$.$ Bad Debts Expense

$12,000$

Allowance for Doubtful Accounts

$12,000$