At December $31,2024,$ Martin Travel Agency has an Accounts Receivable balance of $$104,000.$ Its net accounts receivable is $$103,100$ before the year$-$end$-$adjustment. Service revenue $($all on account$)$ for $2024$ was $$560,000.$ Martin estimates that its bad debt expense for the year is $2\%$ of service revenue. How are Martin's balance sheet and income statement impacted by the adjustment to recognize bad debt expense for the year?