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

• Total credit sales for the current year: $980,000
• Accounts receivable balance at December 31 of the current year: $280,000.
• Balance of Allowance for Doubtful Accounts credit balance at December 31: $7,200.

Prepare the necessary adjusting entry to record bad debt expense assuming this companys bad debts are estimated to equal 5% of accounts receivable.