Merrified Company uses the allowance method to account for uncollectible receivables. During 2023, it had total sales of $4,500,000, including $500,000 in cash sales. On December 31, 2023, the company had an accounts receivable balance of $365,000 and a credit balance in allowance for doubtful accounts of $12,000. Merrified Company has a December 31 year end. Required a) Assume the company uses the income statement approach to estimate uncollectible receivables. Based on historical data, the company estimates 0.75% of credit sales will be uncollectible. 

Prepare the journal entry to record bad debt expense on December 31, 2023.