Nichols Company uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $250,000 and credit sales are $1,000,000. Management estimates that 4% of accounts receivable will be uncollectible. What adjusting entry will Nichols Company make if the Allowance for Doubtful Accounts has a credit balance of $2.500 before adjustment? a. Bad Debt Expense b. Bad Debt Expense c. Bad Debt Expense d. Bad Debt Expense 10,000 Allowance for Doubtful Accounts Allowance for Doubtful Accounts Accounts Receivable Accounts Receivable 10,000 7,500 7,500 10,000 10,000 1) a 2) b 3) c 4) d s for the year are estimated to be