On December 31 of the current year, a company's unadjusted trial balance included the following account balances:

Sales $1,170,000 credit

Accounts Receivable $97,250 debit

Allowance for Doubtful Accounts $951 credit

If the company assumes that 0.3% of sales will be uncollectible, the journal entry to record bad debt expense for the year would be:

1)The correct journal entry is not given.

2)Debit Allowance for Doubtful Accounts $4,461; credit Bad Debt Expense $4,461.

3)Debit Bad Debt Expense $3,510; credit Allowance for Doubtful Accounts $3,510.

4)Debit Bad Debt Expense $2,559; credit Allowance for Doubtful Accounts $2,559.

5)Debit Bad Debt Expense $3,510; credit Accounts Receivable $3,510.