Rose 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 6% of accounts receivable will be uncollectible. What adjusting entry will Rose Company make if the Allowance for Doubtful Accounts has a balance of (0) before adjustment? Select one: O a. Bad Debt Expense is debited by 10,000 & Accounts Receivable is credited by 10,000 O b. Bad Debt Expense is debited by 12,500 & Allowance for Doubtful Accounts is credited by 12,500 O c. Bad Debt Expense is debited by 15,000 & Allowance for Doubtful Accounts is credited by 15,000 O d. Bad Debt Expense is debited by 7,500 & Accounts Receivable is credited by 7,500