The Accountant, Inc. uses the percentage of receivables method for recording the expense for bad debts. The accounts receivable balance is $425,000 Total Sales were $650,000. The officers at the company has determined that 5% of the accounts receivable will not be collected. If there is an adjusting that The Accountant, Inc. will need to make, what is it - if the Allowance for Doubtful Accounts has a credit balance of $2,500 O DR. Bad Debts Expense 18.750 CR. Allowance for Doubtful Accounts 18.750 O DR. Bad Debt Expense 18,750 CR Accounts Receivable 18,750 None of the above O DR. Bad Debt Expense 21,250 CR Accounts Receivable 21.250 O DR. Bad Debt Expense 21,250 CR Allowance for Doubtful Account 21,250