3 Book @e Het rint Exercise 7-7 Percent of accounts receivable method LO P3 Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $146,000, and it estimates that 4% 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 $2,482 credit balance before the adjustment. (b) a $730 debit balance before the adjustment. View transaction list Journal entry worksheet Wences < 1 Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has a $2,482 credit balance before the adjustment. Note: Enter debits before credits. Transaction General Journal Debit Credit (a) Bad debts expense 438 Allowance for doubtful accounts 438