Sanders Inc. is a small brick manufacturer that uses the direct write-off method to account for uncollectible accounts. At the end of 2021, its balance for Accounts Receivable is $33,000. The company estimates that of this amount, $3,800 is not likely to be collected in 2022. In 2022, the actual amount of bad debts is $2,700.

Record, if necessary, an adjustment for estimated uncollectible accounts at the end of 2021 and the actual bad debts in 2022. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)