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 6% of receivables
$\begin{array}{lr}\text { Accounts receivable balance } & \$ 85,000 \\\text { Allowance for bad debts, balance (debit) } & \$ 240 \\\text { Net Sales } & \$ 750,000\\\$\end{array}$