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If the company estimates it will not collect 3% of A/R, the debit to Bad Debt Expense in the adjustments column is what? Please explain

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If the company estimates it will not collect 3% of A/R, the debit to Bad Debt Expense in the adjustments column is what?

Please explain how you came up with the answer. Thank you.

Unadjusted Trial Balance Adjusted Trial Balance Adjustments Cr DDr Dr Cr 40,000 2,000 800 Accounts Receivable Allowance for Doubtful Accounts Supplies on Hand Utilities Payable Notes Payable Bad Debt Expense Supplies Expense Utilities Expense 6,000 10,000 2,300 800 8,000 1,000

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