Nelson Manufacturing has credit sales of $1,500,000 in the financial year of 2020, of which $300,000 remains uncollected at 30 June 2020.The credit manager estimates that $15,000 of these sales will prove uncollectible. Which of the following is the correct entry torecordthe transaction under Allowance Method?

Select one:

a.Bad debtsexpense 300,000

Allowance for doubtful account 300,000

b.Allowance for doubtful account 300,000

Accounts receivable300,000

c.Bad debtsexpense 15,000

Allowance for doubtful account 15,000

d.Bad dets expense 15,000

Accounts receivable 15,000