Prepare the adjusting journal entry for Bad Debts Expense from the following information using the balance sheet approach. The Allowance for Doubtful Accounts has a credit balance of $3,000. 
Definitions:
Purchase of Stock
The act of buying shares in a company, either through a stock exchange or directly from the company.
Investing Activities
Financial transactions related to the acquisition or sale of long-term assets and other investments not considered as cash equivalents.
Statement of Cash Flows
A report detailing the impact of variations in balance sheet positions and income on cash and cash equivalents, segmented into operating, investing, and financing activities.
Increase in Accounts Receivable
A rise in the amount of money owed to the business by its customers for goods or services delivered.
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