Metlock Company reports the following financial information before adjustments.
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Dr.
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Cr.
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| Accounts Receivable |
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$140,500 |
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| Allowance for Doubtful Accounts |
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$3,730 |
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| Sales Revenue (all on credit) |
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|
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816,400 |
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| Sales Returns and Allowances |
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53,360 |
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Prepare the journal entry to record bad debt expense assuming Metlock Company estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but Allowance for Doubtful Accounts had a $1,540 debit balance. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)