Sunland Company has a credit balance of $$3,500$ in Allowance for Doubtful Accounts before adjustment. The total estimated uncollectibles under the percentage$-$of$-$receivables basis is $$5,880.$

Prepare the adjusting entry to record bad debt expense. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Account Titles and Explanation

Debit

Credit