On January 1, 2025, Teal Mountain Corporation started the year with a balance in Accounts Receivable of $144,000 and a credit balance in Allowance for Doubtful Accounts of $7,950. During 2025, the company had total sales of $645,000; 75% of these sales were credit sales. Collections (not including the cash sales) during the period were $513,750. Teal Mountain wrote off as uncollectible accounts receivable of $8,000. In addition, an account of $760 that was previously written off an uncollectible was recovered during the year. Uncollectible accounts are estimated to be 5% of the end-of-year Accounts Receivable balance. (Omit cost of goods sold entries.) (a)

Prepare the entry to record bad debt expense for the period. (List debit entry before credit entry. Credit occount 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 O for the amounts.)