At December $31$ of the current year, a company reported the following:

Total sales for the current year: $$750,000$ includes $$400,000$ in cash sales

Accounts receivable balance at Dec. $31,$ end of current year: $$101,000$

Allowance for Doubtful Accounts balance at January $1,$ beginning of current year: $$1,100$ credit Bad debts written off during the current year: $$11,100.$

Prepare the necessary adjusting journal entry to record bad debts expense assuming this company's bad debts are estimated to equal $6\mathrm{.}5\%$ of accounts receivable.

Show your work.

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$12$pt $vv$ Paragraph

B

$I$

${?}_{?}$

A

$2_{?}$

$T^2$