At the beginning of 2017, EZ Tech Company's Accounts Receivable balance was $134,000, and the balance in Allowance for Doubtful Accounts was $2,300. EZ Tech's sales in 2017 were $1,010,000, 90% of which were on credit. Collections on account during the year were $640,000. The company wrote off $4,000 of uncollectible accounts during the year. Identify and analyze the adjustments to recognize bad debts assuming that (a) bad debts expense is 4% of credit sales and (b) amounts expected to be uncollectible are 7% of the year-end accounts receivable. How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. If a contra account is decreased, it will have the effect of increasing the corresponding financial statement item.