Wildhorse Company has been in business several years. At the end of the current year, the ledger shows the following:
Accounts Receivable $325,200 Dr.
Sales Revenue 2,619,000 Cr.
Allowance for Doubtful Accounts 7,500 Cr.
Bad debts are estimated to be 5% of accounts receivable. Prepare the entry to adjust Allow- ance for Doubtful Accounts.