Valli Company uses the percentage of sales method for recording bad debts expense. For the year, cash sales are $700,000 and credit sales are $2,500,000. Management estimates that 1% is the sales percentage to use. What adjusting entry will Valli Company make to record the bad debts expense? Select one: o Bad Debt Expense Allowance for Doubtful Accounts 25,000 25,000 32,000 Bad Debt Expense Allowance for Doubtful Accounts 32,000 25,000 Bad Debt Expense Accounts Receivable 25,000 d. Bad Debt Expense Accounts Receivable 32,000 32,000