The Allowance for Bad Debts has a credit balance of $2,000 at the end of the year before adjustment, and a "percent of sales" estimate indicates there are accounts that are uncollectible of $5,000. Which of the following adjusting entries would correctly word the adjustment to Allowance for Bad Debts? O debit Allowance for Bad Debts, 55,000; credit Bad Debt Expense, $5,000 debit Bad Debt Expense, $5,000 credit Allowance for Bad Debts. $5.000 no adjustment is required for the allowance method debit Bad Debt Expense $7.000; credit Allowance for Bad Debts, $7.000