MJF Company has net credit sales of $2,500,000 and estimates bad debts at 0.5 percent of net credit sales. Which of the following journal entries would be used to record estimated uncollectible accounts receivable?
a. Debit Uncollectible Accounts Expense for $12,500, and credit Allowance for Doubtful Accounts for $12,500.
b. Debit Uncollectible Accounts Expense for $12,500, and credit Accounts Receivable for $12,500.
c. Debit Uncollectible Accounts Expense for $125,000, and credit Allowance for Doubtful Accounts for $125,000.
d. Debit Uncollectible Accounts Expense for $125,000, and credit Accounts Receivable for $125,000.