Requirement $2.$ Assume Pilgrim, Inc. had an unadjusted $$1,400$ debit balance in Allowance for Bad Debts at December

$31,2025.$ Journalize Pilgrim, Inc.$\text{'}$s December $31,2025,$ adjustment to record bad debts expense using

the percent$-$of$-$receivables method. $($Record debits first, then credits. Select the explanation on the last line of the journal

entry table.$)$