Blue Company reports the following financial information before adjustments.

		Dr.			Cr.
Accounts Receivable		$169,500
Allowance for Doubtful Accounts					$2,060
Sales Revenue (all on credit)					841,800
Sales Returns and Allowances		54,450

Prepare the journal entry to record bad debt expense assuming Blue Company estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but Allowance for Doubtful Accounts had a $1,500 debit balance.