The auditors of Atherton Ltd detected a number of issues in their review of the draft financial statements for the year ended 30 June 2035. One issue involved the estimation of doubtful debts expense. Atherton uses the percentage of credit sales method. The doubtful debts expense of $240,000 was estimated using 10% of credit sales instead of 2% of credit sales. The auditors reviewed the previous two years of accounts and the correct rate of 2% was used in those years and provided a good estimate of bad debts.

Assume this is a material error. Calculate the amount required in the journal entry on 30 June 2035 to correct this error.