Allowance Method of Accounting for Bad Debts - Comparison of the Two Approaches Kandel Company had the following data available for 2014 (before making any adjustments): Prepare the journal entry to recognize bad debts under the following assumptions:(a) bad debts expense is expected to be 2% of net credit sales for the year and (b) Kandel expects it will not be able to collect 6% of the balance in accounts receivable at year-end. Assume instead that the balance in the allowance account is a exist2, 600 debit. How will this affect your answers to part (1)