Nieto Co. elects to use the percentage-of-sales basis in 2008 to record bad debts expense. It estimates that 3% of net credit sales will become uncollectible. Sales are $806,637 for 2008, sales returns and allowances are $46,389, and the allowance for doubtful accounts has a credit balance of $9,534. Prepare the adjusting entry to record bad debts expense in 2008.