Haven Company uses the percentage of sales method for recording bad debts expense. For the year, cash sales are $600,000 and credit sales are $2,200,000. Management estimates that 1% is the sales percentage to use. What adjusting entry will Haven Company make to record the bad debts expense? a. Bad Debts Expense 28,000
Allowance for Doubtful Accounts 28,000
b. Bad Debts Expense 28,000
Accounts Receivable 28,000
c. Bad Debts Expense 22,000
Allowance for Doubtful Accounts 22,000
d. Bad Debts Expense 22,000
Accounts Receivable 22,000
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