Kingston Co. uses the percentage-of-receivables basis to record bad debt expense. It estimates that 3% of accounts receivable will become uncollectible.

Accounts receivable are $603,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,030.

Prepare the adjusting journal entry to record bad debt expense for the year If the allowance for doubtful accounts had a debit balance of $910 instead of a credit balance of $2,030, determine the amount to be reported for bad debt expense.

Please do not only give the correct answer but also explain how it was obtained. Thanks!