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At each calendar year-end, Mazie Supply Co. uses the percent of accounts receivable method to estimate bad debts. On December 31, 2017, it has outstanding accounts receivable of $74,500, and it estimates that 4% will be uncollectible.

Prepare the adjusting entry to record bad debts expense for year 2017 under the assumption that the Allowance for Doubtful Accounts has:

(a) a $1,267 credit balance before the adjustment.

(b) a $373 debit balance before the adjustment.

At each calendar year-end, Mazie Supply Co. uses the percent of accounts receivable method to estimate bad debts. On December 31, 2017, it has outstanding accounts receivable of $74,500, and it estimates that 4% will be uncollectible. Prepare the adjusting entry to record bad debts expense for year 2017 under the assumption that the Allowance for Doubtful Accounts has (a) a $1,267 credit balance before the adjustment. (b) a $373 debit balance before the adjustment. View transaction list Journal entry worksheet 2 Prepare the adjusting entry to record bad debts expense for year 2017 under the assumption that the Allowance for Doubtful Accounts has a $1,267 credit balance before the adjustment Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal