Question: PLEASE EXPLAIN HOW TO DO THIS I don't understand it Patterson Co. had a debit balance of $1,000 in its Allowance for Doubtful Accounts account

PLEASE EXPLAIN HOW TO DO THIS

I don't understand it

Patterson Co. had a debit balance of $1,000 in its Allowance for Doubtful Accounts account on December 31,2015. Their net sales for the year totaled $700,000. If they estimate their Bad Debt for the year to be 3% of Net Sales, their year end adjusting entry for Bad Debts would be:

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