Brief Exercise 5-6 Record the adjusting for uncollectible accounts (LO5-5)

At the end of the year, Mercy Cosmetics balance of Allowance for Uncollectible Accounts is $400 (credit) before adjustment. The balance of Accounts Receivable is $15,000. The company estimates that 10% of accounts will not be collected over the next year.

What adjustment would Mercy Cosmetics record for Allowance for Uncollectible Accounts? (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)