Ferra Brothers provided the following information regarding its accounts receivable at the

beginning of the current year:

$($Click the icon to view the schedule of accounts receivable.$)$

During the year, the company reported net credit sales of $$21,400,000$ of which it

collected $$9,980,000.$

The company wrote off $$59,000$ of actual bad debts for the year. Ferra Brothers

estimates the allowance for doubtful accounts at $5\%$ of the ending accounts

receivable balance.

Prepare the journal entry to record the year$-$end adjusting entry for the bad debt

expense assuming that Ferra Brothers recovered $$13,000$ of the $$59,000$

write$-$offs during the year. $($Record debits first, then credits. Exclude explanations

from any journal entries.$)$

Data table