need help with B)

apparently you debit bad debit expense 32,000 and credit allowance for doubtful accounts 32,000. But why 32,000?

Problem 3 The December 31, 2016 balance sheet of the Cummings Company had Accounts Receivable of $550,000 and a credit balance in Allowance for Doubtful Accounts of $29,000. During 2017, the following transactions occurred: sales on account $1,540,000; sales returns and allowances, $110,000; collections from customers, $1,400,000; accounts written off $40,000; and previously written off accounts of $6,000 were collected. Required: (6 Marks) Journalize the 2017 transactions b) a) If the company uses the percentage of receivables approach to estimate bad debt expense and determines that uncollectible accounts are expected to be 5% of accounts receivable, what is the adjusting entry at December 31, 2017