A company uses the percent of sales method to determine its bad debt expenses. At the end of the current year, the company's unadjusted trail balance reports the following selected amounts.

Accounts Receivable: $375,000 debit

Allowances for uncollectible accounts: $500 debit

Net sales: $800,000 credit

All sales are made on credit. Based on past experiences the company estimates that 0.6% of net credit sales to be uncollectible. what adjusting entry should the company make the end of the current year to record its estimated bad debt expenses?