3. Wellington Corp. has outstanding accounts receivable totaling $1.27 million as of December 31 and sales on credit during the year of $6.4 million. There is a debit balance of $6,000 in the allowance for doubtful accounts. If the company estimates that 2% of its accounts receivable will be uncollectible: Required What will be the balance in allowance for doubtful accounts after the year-end adjustment to record bad debt expense? Prepare the journal entry to recognize the bad debt expense.