At each calendar year-end, Mazie Supply Co. uses the percent of accounts receivable method to estimate bad debts. On December 31, It has outstanding accounts receivable of $128,000, and it estimates that 5 % will be uncollectible Prepare the adjusting entry to record bad debts expense for the year ended December 31 under the assumption that the Allowance for Doubtful Accounts has: (e) a $2,176 credit balance before the adjustment. b) a $640 debit balance before the adjustment. View transaction list Journal entry worksheet 2 Prepare the adjusting entry to record bad debts expense for the year ended December 31 under the assumption that the Allowance for Doubtful Accounts has a $2,176 credit balance before the adjustment. Note: Enter debits before credits. General Journal Debit Credit Date Dec. 31 View general journal Clear entry Record entry At year-end (December 31), Chan Company estimates its bad debts as 0.880 % of its annual credit sales of $817,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $409 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off Prepare the journal entries for these transactions. View transaction Ilist Journal entry worksheet 1 2 4 Record the estimated bad debts expense. Note: Enter debits before credits Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal