Kinsler Company uses the percentage-of-receivables method for recording bad debt expense. The Accounts Receivable balance is $250,000 and credit sales are $1,000,000. Management estimates that 6% of accounts receivable will be uncollectible. What adjusting entry will Kinsler Company make if the Allowance for Doubtful Accounts has a credit balance of $2,500 before adjustment? 
Definitions:
Tie-rod Assembly
A crucial component of the steering mechanism that transmits force from the steering center link to the steering knuckle, enabling wheel turning.
Steering System
The system in vehicles that allows the driver to guide and direct the vehicle in the desired direction.
Crosstube Tie-rod Ends
Components in a vehicle's steering system that connect the tie rods to the steering knuckles, crucial for precise steering control.
Ackerman Arm
Steering component that connects a tie rod end to the steering knuckle.
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