Ortiz Company uses the percentage of sales method for recording bad debts expense. For the year, cash sales are $700,000 and credit sales are $2,500,000. Management estimates that 1% is the sales percentage to use. What adjusting entry will Ortiz Company make to record the bad debts expense? a. Bad Debt Expense ... 25,000 Allowance for Doubtful Accounts .. 25,000 b. Bad Debt Expense ......... 32,000 Allowance for Doubtful Accounts. 32,000 C. Bad Debt Expense .......... 25,000 Accounts Receivable 25,000 d. Bad Debt Expense ... 32,000 Accounts Receivable 32,000