Question 20 1 pt Nichols Company uses the % of receivables method for recording bad debts expense. The accounts receivable balance is $200,000 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 $2,000 before adjustment? debit Bad Debt Expense 6,000 credit Allowance for Doubtful Accounts 6,000 debit Bad Debt Expense 8,000 credit Allowance for Doubtful Accounts 8,000 debit Bad Debt Expense 8,000 credit Accounts Receivable 8,000 debit Bad Debt Expense 6,000 credit Accounts Receivable 6,000 1 Question 21