Multiple Choice Question 108 Skysong, Inc. uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $140000 and credit sales are $1410000. Management estimates that 3% of accounts receivable will be uncollectible. What adjusting entry will Skysong, Inc. make if the Allowance for Doubtful Accounts has a credit balance of $0 before adjustment? Bad Debt Expense 4200 Allowance for Doubtful Accounts 4200 Bad Debt Expense 4200 Allowance for Doubtful Accounts 4200 O Bad Debt Expense 4200 Accounts Receivable 4200 Bad Debt Expense 4200 Accounts Receivable 4200