The following information is extracted from Company $x^{\text{'}}$ s accounting records at the

beginning of prior year:

Accounts receivable

$$63,000$

Allowance for doubtful accounts

$$1,400($credit$)$

During prior year, sales on credit amounted $$575,000,$$$557,400$ was collected on

outstanding receivables and $$2,600$ of receivables were written off as uncollectible. On

December $31$ of prior year Company X estimated its allowance to be $4\%$ of the

outstanding gross accounts receivable. Prepare the journal entry necessary to record

Company X$\text{'}$s estimate of bad debt expense for prior year.