Sheffield Corp. uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $250000 and credit sales are $2510000. Management estimates that 5% of accounts receivable will be uncollectible. What adjusting entry will Sheffield Corp. make if the Allowance for Doubtful Accounts has a credit balance of $5000 before adjustment? Bad Debt Expense Accounts Receivable Bad Debt Expense Allowance for Doubtful Accounts 12500 7500 12500 7500