Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts

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Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $55,000, and it estimates that 2% will be uncollectible. 

Prepare the year-end adjusting entry to record bad debts expense 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.

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