I need help with adjusting entries in Accounting Info Systems SUA in Quickbooks.

1. Bad Debt Expense and Allowance Bad debt expense is estimated once annually at the end of each year as 1/4 of one percent (0.0025) of net sales and is recorded in the general journal as of December 31. As explained in Chapter 7, Waren uses the direct write-off method during the year and then the allowance method at year-end. General ledger account numbers for the journal entry are: A/C #40900 (Bad Debt Expense) and A/C #10300 (Allowance for Doubtful Account). In order to balance out the Allowance for Doubtful Account and Bad Debt Expense account due to the direct write-off to Bad Debt Expense, you must readjust the Bad Debt Expense account to equal the 1/4 of one percent (0.0025) calculation of net sales.

Income Statement January through December 2017 Jan - Dec 17 Ordinary Income/ Expense Income 30100 . Sales 1,552,838.80 30200 . Sales Returns and Allowances -61, 106.00 30300 . Sales Discounts Taken -15,301.32 31000 . G/L on Sale of Mkt. Securities 1,360.00 31100 . Interest/Dividend Income 1,000.00 31200 - Miscellaneous Revenue 825.00 Total Income 1,479,616.48 Cost of Goods Sold 30400 . Cost of Goods Sold 988,439.81 30700 - Purchases Discounts Taken -16,283.60 30800 - Freight-in 24.506.44 Total COGS 996.662.65 Gross Profit 482.953.83 Expense 40100 . Rent Expense 57.600.00 40200 . Advertising Expense 22.275.00 40300 . Office Supplies Exponso 5.801 65 40500 - Wages and Salaries Exponso 140,776.23 40600 . Payroll Tax Expense 11.620.60 40800 . Interest Expense 0.00 40900 - Bad Debt Expense 4.400.00 41000 . Other Operating Expense 36.675.75 Total Expense 279.149.23 Net Ordinary Income 203.804.60 Net Income 203,804.60