Sales for the year	600,000
Current balance of bad debt expense	35,000
Ending balance of accounts receivable	84,000
Current balance allowance for doubtful accounts	40,000

Percent of sales uncollectible	3.00%
Percent of accounts receivable uncollectible	3.50%

Assuming the income statement approach, what is amount of the entry to adjust bad debt expense and allowance for doubtful accounts?