During 2006 the company had the following transactions related to receivables.
1. Sales on account $3,800,000
2. Sales returns and allowances $50,000
3. Collections of accounts receivable $3,000,000
4. Write-offs of accounts receivable deemed uncollectible $90,000
5. Recovery of bad debts previously written off as uncollectible $40,000
Prepare the journal entry to record bad debts expense for 2006, assuming that aging the accounts receivable indicates that expected bad debts are $110,000.