Micah Company uses the allowance method of accounting for bad debts. The following summary schedule was prepared from an aging of accounts receivable outstanding on December 31 of the current year.

No. of Days outstanding Amount Probability of Collection 0~31 days $675,000 97% 31~60 days 270,000 90% Over 60 days 135,000 85%

The following additional information is available for the current year:

Net credit sales for the year $5,400,000 Allowance for bad debts: Balance, January 1 60,750 Balance before adjusting entries 2,700

The company bases its estimate of bad debts on the aging of accounts receivable. Prepare the appropriate journal entry to record bad debt expense for the current year ending December 31.