Solar Company uses the percentage of sales method to record bad debt expense. It estimates that 1% of net credit sales will become uncollectible. Solar Company reported the following information in its general ledger for the year ended September 30, 2017:

List of accounts:

Credit Sales Debit Credit 775,000 Sales Returns and Allowances Debit Credit 35,000 Sales Discounts Credit 10,000 Accounts Recelvable Debit Credit 275,000 Allowance for Doubtful Accounts Debit Credit 4,000 Prepare the adjusting entry to record bad debt expense at year end. (Credit account titles are indent manually.) Date Account Titles and Explanation Debit Credit Sept. 30 Accounts Receivable Accumulated Depreciation Equipment Accumulated Depreciation Furniture Allowance for Doubtful Accounts Bad Debt Expense Cash Cost of Goods Sold Credit Card Expense Credit Card Receivable Debit Card Expense Equipment GST/HST Recoverable Interest Receivable Interest Revenue Merchandise Inventory Notes Receivable Prepaid Expenses Prepaid Insurance Rent Expense Salaries Expense Sales Sales Discounts Sales Returns and Allowances Service Revenue Short-Term Investments Supplies Supplies Expense