Upstart Enterprise's Total Revenue for Last Year Is $300,000, and It

Multiple Choice

Upstart Enterprise's total revenue for last year is $300,000, and it estimates 2% of revenue as bad debts. Which of the following journal entries records the bad debts expense under the allowance method?

A) Debit Allowance for Doubtful Accounts by $6,000, and credit Bad Debts Expense by $6,000.
B) Debit Accounts Receivable by $6,000, and credit Bad Debts Expense by $6,000.
C) Debit Bad Debts Expense by $6,000, and credit Accounts Receivable by $6,000.
D) Debit Bad Debts Expense by $6,000, and credit Allowance for Doubtful Accounts by $6,000.