Qinshan Co. uses the percentage of sales approach to record bad debts expense. It estimates that 1.5% of net credit sales will become uncollectible. Credit sales are $820,000 for the year ended April 30, 2008; sales returns and allowances are $50,000; sales discounts are $17,000; and the allowance for doubtful accounts has a credit balance of $7,500. Prepare the adjusting entry to record bad debts expense in 2008.

do I subtract sales returns and allowances and dicounts to get net credit sales