The trial balance before adjustment of Swifty Company reports the following balances:

Dr. Cr.

Accounts receivable $215,000

Allowance for doubtful accounts $2,550

Sales (all on credit) 600,000

Sales returns and allowances 32,000

(a)

Prepare the entry for estimated bad debts assuming that doubtful accounts are estimated to be 15% of gross accounts receivable. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)