The Grass is Greener Corporation provides $6,000 worth of lawn care on account during the month. Experience suggests that about 2% of net credit sales will not be paid. To record the potential bad debts, The Grass is Greener Corporation would:

Multiple Choice

debit Bad Debt Expense and credit Allowance for Doubtful Accounts for $120.

debit Accounts Receivable and credit Allowance for Doubtful Accounts for $120.

debit Allowance for Doubtful Accounts and credit Bad Debt Expense for $120.