Hahn Company Uses the Percentage of Sales Method for Recording $\$ 300,000$

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) $\begin{array} { l }\text { Bad Debts Expense}&15,000 \\ \text { Allowance for Doubtful Accounts}&&15,000 \\\end{array}$
B) $\begin{array} { l }\text { Bad Debts Expense}&12,000\\ \text { Allowance for Doubtful Accounts}&&12,000 \\\end{array}$

C) $\begin{array} { l }\text { Bad Debts Expense }&12,000\\ \text {Accounts Receivable }&&12,000 \\\end{array}$

D) $\begin{array} { l } \text { Bad Debts Expense }&15,000 \\ \text { Accounts Receivable}&&15,000 \\\end{array}$