ABC Inc. uses the aging of accounts receivable method to determine bad debt expense. The following information regarding the fiscal year 2023 is provided:

Accounts receivable, end	Days outstanding	Estimated loss rate
$1,000,000	Under 30 days	3%
$400,000	30 to 150 days	7%
$100,000	Over 150 days	40%

Beginning of period allowance for uncollectible accounts: $100,000 Actual write-offs of bad debt during the period: $5,000

Which of the following is the correct journal entry for the bad debt expense in 2023?