Question 7 (0.5 points) Drax Company uses the Allowance Method to account for bad debts. The 12/31/2020 UNADJUSTED trial balance reports Accounts Receivable with a normal balance of $65,000 and the Allowance for Doubtful Accounts with a normal balance of $400. Drax Company estimates 3% of the Accounts Receivable balance will be uncollectible. The necessary adjusting entry to estimate bad debts includes a DEBIT to: Bad Debt Expense for $1,550 Allowance for Doubtful Accounts for $1,550 Allowance for Doubtful Accounts for $1,950 Bad Debt Expense for $1,950