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Hahn Company uses the percentage of sales method for recording bad debts expense. For the year, cash sales are $300,000 and credit sales are $1,200,000. Management estimates that 1% is the sales percentage to use. What adjusting entry will Hahn Company make to record the bad debts expense?
A. Bad Debts Expense 15000 Allowances for Doubtful Accounts 15000
B. Bad Debts Expense 12000 Allowances for Doubtful Accounts 12000
C. Bad Debts Expense $12,000 Accounts Receivable $12,000
D. Bad Debts Expense $15,000 Accounts Receivable $15,000
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