QUESTION 10 The following selected amounts are reported on the year-end unadjusted trial balance report for a company that uses the percent of sales method to determine its bad debts expense. Accounts receivable Allowance for Doubtful Accounts $435,000 Debit 1,250 Debit 2,100,000 Credit Net Sales All sales are made on credit. Based on past experience, the company estimates 1% of credit sales to be uncollectible. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense? Debit Bad Debts Expense $19,750; credit Allowance for Doubtful Accounts $19,750. Debit Bad Debts Expense $15,225; credit Allowance for Doubtful Accounts $15,225. Debit Bad Debts Expense $22,250; credit Allowance for Doubtful Accounts $22,250. Debit Bad Debts Expense $7,350; credit Allowance for Doubtful Accounts $7,350. Debit Bad Debts Expense $21,000; credit Allowance for Doubtful Accounts $21,000