7 Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $128,500, 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: 10 points (a) a $2,185 credit balance before the adjustment (b) a $643 debit balance before the adjustment. 01:22:40 View transaction list Journal entry worksheet 1 2 > Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has a $2,185 credit balance before the adjustment. Note: Enter debits before credits. Transaction General Journal Debit Credit (a) Record entry Clear entry View general journal