Sandhill Co. uses the percentage-of-receivables basis to record bad debt expenses. It estimates that 1% of accounts receivable will become uncollectible. Accounts receivable are $450,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,140.

Prepare the adjusting journal entry to record bad debt expenses for the year. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)