Bad Debt Expense, Aging of Accounts Receivable, Journal Entry. Burl Brothers provided the following information regarding its accounts receivable at the beginning of the current year:

Accounts receivable $1,320,000

Allowance for doubtful accounts (320,000)

Net realizable value $1,000,00

During the year, the company reported net credit sales of $21,000,000 of which it collected $9,900,000. The company wrote off $51,000 of actual bad debts for the year. Burl Brothers estimates the allowance for doubtful accounts at 4% of the ending accounts receivable balance.

Using the information provided in BE9-12, prepare the journal entry to record the year-end adjusting entry for the bad debt expense assuming that Burl Brothers recovered $12,000 of the $51,000 write-offs during the year.