Peter Corporation Reported the Following Account Balances for 2018 Peter Corporation Estimates That 2% of Credit Sales Should Be

Peter Corporation reported the following account balances for 2018. Peter has a January to December fiscal year:
$$\begin{array} { | l | r | } \hline \text { Accounts Receivable at Jan 1, 2018 (debit) } & \$ 40,000 \\\hline \text { Allowance for Doubtful Accounts at Jarn } 1,2018 \text { (credit) } & \$ 6,000 \\\hline \text { Total credit sales during } 2018 & \$ 200,000 \\\hline \text { Total collections on accourts receivable during } 2018 & \$ 180,000 \\\hline \text { Uncollectible accounts writter off durirg } 2018 & \$ 10,000 \\\hline\end{array}$$ Peter Corporation estimates that 2% of credit sales should be used to allow for bad debts.
-Assuming that Peter Corporation has a December 31 year-end, prepare the adjusting entry at December 31, 2021 for doubtful accounts.