Response to the following problem:
Hamblin Co. elects to use the percentage-of-sales basis in 2014 to record bad debts expense. It estimates that 2% of net credit sales will become uncollectible. Sales revenues are $871,300 for 2014, sales returns and allowances are $53,200, and the allowance for doubtful accounts has a credit balance of $9,490. What would the debit and credit entries be?