Sawyer, Inc. consistently estimated its bad debt expense at 1 percent of credit sales. In 2017, however, Sawyer determines that it must revise upward the estimate of bad debts for the current year's credit sales to 2%, or double the prior years' percentage. Sawyer uses the revised estimate of 2% and calculates bad debt expense of $500,000. How is the change in the estimated bad debt expense reported in Sawyer's 2017 financial statements? $500,000 of expense and $500,000 as an unusual loss in the income statement. O $500,000 of expense in the income statement and $500,000 as a contra asset in the balance sheet $500,000 of expense in the income statement as an ordinary item, $500,000 of expense reported as an adjustment to the beginning balance of retained earnings (net of tax). $500,000 of expense reported as a change in accounting principle and accounted for under the retrospective approach