(Learning Objective 4: Reporting bad debts by the allowance method) On December 31, Darci’s Travel has an accounts receivable balance of $88,000. Allowance for Doubtful Accounts has a credit balance of $900 before the year-end adjustment. Darci’s Travel estimates that doubtful-account expense for the year is equal to 5% of ending receivables. Make the year-end entry to record doubtful-account expense. Show how the accounts receivable and the allowance for doubtful accounts are reported on the balance sheet.