Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $258,000 and credit sales are $1,000,000. An aging of accounts receivable shows that...

Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $258,000 and credit sales are $1,000,000. An aging of accounts receivable shows that approximately 6% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $1,400 before adjustment?