McKinney & Co. estimates its uncollectible accounts as a percentage of credit sales. McKinney made credit sales of $1,500,000 in 2019. McKinney estimates 2.5% of its sales will be uncollectible.

At the end of the first quarter of 2020, McKinney & Co. reevaluates its receivables. McKinneys management decides that $8,500 due from Mangold Corporation will not be collectible. This amount was previously included in the allowance account.

Required:

Prepare the journal entry to record the write-off for McKinney.