Monty Company reports the following financial information before adjustments.
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.