A company used the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: Accounts receivable $245,000 debit Allowance for uncollectible accounts 300 credit Net Sales 900,000 credit All sales are made on credit. Based on past experience, the company estimates 0.5% of credit sales to be uncollectible. Required:
What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared?

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