Monty Company reports the following financial information before adjustments

Monty Company reports the following financial information before adjustments.

Dr.        Cr.
Accounts Receivable        $147,300
Allowance for Doubtful Accounts                    $3,380
Sales Revenue (all on credit)                    809,000
Sales Returns and Allowances        50,910

Prepare the journal entry to record bad debt expense assuming Monty Company estimates bad debts at (a) 5% of net sales and (b) 5% of accounts receivable but Allowance for Doubtful Accounts had a $1,380 debt balance.

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