Determine the Amount of the Adjustment for Bad Debts Given

Short Answer

Determine the amount of the adjustment for bad debts given:
Bad debts are estimated to be 3% of credit sales
$\begin{array}{lr}\text { Accounts receivable balance } & \$ 600,000 \\\text { Allowance for bad debts balance (credit) } & \$ 200 \\\text { Net Credit Sales } & \$ 215,000\\\$\end{array}$