Molina Company had a $700 credit balance in Allowance for Doubtful Accounts on December 31, 2027, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following: Current Accounts 1-30 days past due 31-60 days past due 61-90 days past due Over 90 days past due Total Accounts Receivable $120,000 20,000 10,000 10,000 8,000 $168,000 Estimated Percentage Uncollectible 1% 3% 6% 12% 30%

Molina Company had a $700 credit balance in Allowance for Doubtful Accounts on December 31, 2027, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following: Prepare the adjusting entry on December 31,2027, to recognize bad debt expense. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List debit entry before credit entry.)