Credit sales for the yr. are $400,000, uncollectible accounts expense is estimated @ 1% of credit sales, and the allowance has a $300.00 credit balance before adjustment. What do I journalize and where?

Debit Bad Debts expense $4000
Credit allowance for doubtful debts $4000

Recording bad debts using credit sales follows income statement approach. The balance in the allowance account will now be $4,300.