the Company uses the percentage of sales method for recording bad debts expense. For the year total sales are $3,500,000 (consisting of $500,000 of cash sales and $3,000,000 of sales on account). Management estimates that 2.5% is the percentage to use to determine bad debts. What adjusting entry will the Company make to record the bad debt expense? a. Bad Debt Expense 87,500 Allowance for Doubtful Accounts 87,500 b. Bad Debt Expense 75,000 Allowance for Doubtful Accounts 75,000 c. Bad Debt Expense 12,500 Allowance for Doubtful Accounts 12,500 d. Allowance for Doubtful Accounts 87,500 Bad Debt Expense 87,500 e. Allowance for Doubtful Accounts 75,000 Bad Debt Expense 75,000