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 $110,000, 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:

1. (a) a $1,870 credit balance before the adjustment.

2. (b) a $550 debit balance before the adjustment.

• Prepare the adjusting entry to record bad debts expense for year 2017 under the assumption that the Allowance for Doubtful Accounts has a $1,870 credit balance before the adjustment.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
(a)

• Prepare the adjusting entry to record bad debts expense for year 2017 under the assumption that the Allowance for Doubtful Accounts has a $550 debit balance before the adjustment.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
(b)