4 Mazie Supply Co. uses the percent of accounts receivable method On December 31, it has outstanding accounts receivable of $94.000, and it estimates that 5% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has: 8.33 points (a) a $1,598 credit balance before the adjustment (b) a $470 debit balance before the adjustment View transaction list Journal entry worksheet Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has a $1,598 credit balance before the adjustment.. Note: Enter debits before credits. General Journal Credit Transaction (a) Record entry Clear entry View general journal