Concord Corporation has been in business several years. At the end of the current year, the unadjusted trial balance shows:

Accounts Receivable

$$306,400Dr.$

$2,806,800Cr.$

Sales Revenue

$2,806,800Cr$

Allowance for Doubtful Accounts

$6,500Cr.$

Bad debts are estimated to be $7\%$ of receivables. Prepare the entry to adjust Allowance for Doubtful Accounts. $($Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Account Titles and Explanation

Debit

Credit

$($To record estimate of uncollectible accounts$)$