Atlas Inc. had $185,000 of accounts receivable and $590,000 in sales during the year. The December 31st balance, before any adjustments, for the Allowance for Doubtful Accounts is $700 (credit balance). Prepare the adjusting journal entry needed on December 31st if Atlas, Inc. estimates bad debts to be 1% of sales. (Round all calculations to the nearest whole dollar and show your calculations.)