At December $31,$ Folgeys Coffee Company reports the following results for its calendar year.

Cash sales

Credit sales

$$907,000$

$307,000$

Its year$-$end unadjusted trial balance includes the following items.

Accounts receivable

Allowance for doubtful accounts

$$132,000$ debit

$5,700$ debit

Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be

$(1)6\%$ of credit sales,

$(2)4\%$ of total sales and

$(3)9\%$ of year$-$end accounts receivable.

Journal entry worksheet

$1$

$2$

$3$

Record Bad Debts Expense assuming uncollectibles are estimated to be $6\%$ of credit sales.

Note: Enter debits before credits.