The balance of accounts receivable is $275,000. Net credit sales for the year were $771,000 and cash sales were $68,000.

The balance of accounts receivable is $275,000. Net credit sales for the year were $771,000 and cash sales were $68,000. An analysis of accounts receivable determines that $23,400 will not be collected. The company uses the direct write-off method of accounting for uncollectible accounts. Prepare the adjusting entry to record uncollectible accounts expense.