At each calendar year-end, Booyah Supply Co. uses the percent of accounts receivable method to estimate bad debts. On December 31, 2008, it has outstanding accounts receivable of $55,000, and it estimates that 2% will be uncollectible. Prepare the adjusting entry to record bad debts expense for year 2008 under the assumption that the Allowance for Doubtful Accounts has

(a) a $415 credit balance before the adjustment and

(b) a $291 debit balance before the adjustment.