During 2006 the company had the following transactions related to receivables. Sales on account $3,800,000 2. Sales returns and allowances $50,000 3....

During 2006 the company had the following transactions related to receivables.1. Sales on account $3,800,0002. Sales returns and allowances $50,0003. Collections of accounts receivable $3,000,0004. Write-offs of accounts receivable deemed uncollectible $90,0005. Recovery of bad debts previously written off as uncollectible $40,000Prepare the journal entry to record bad debts expense for 2006, assuming that aging the accounts receivable indicates that expected bad debts are $110,000.I think the answer is:(DR) Bad Debts Expense 110,000(CR) Allowance for Doubtful accounts 110,000