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 $2500 before adjustment? Bad Debt Expense 12500 12500 Allowance for Doubtful Accounts O Bad Debt Expense 10000 10000 Accounts Receivable 12500 Bad Debt Expense 12500 Accounts Receivable