At each calendar year-end, Mazie Supply Co. uses the percent of accounts r 31, 2017, it has outstanding accounts receivable of $77,500, and it estimates that 5% will be uncollectible. method to estimate bad debts. Orn December Prepare the adjusting entry to record bad debts expense for year 2017 under the assumption that the Allowance for Doubtful Accounts has: (a) a $1,318 credit balance before the adjustment. (b)a $388 debit balance before the adjustment. Journal entry worksheet Prepare the adjusting entry to record bad debts expense for year 2017 under the assumption that the Allowance for Doubtful Accounts has a $1,318 credit balance before the adjustment. General Journ Accounts receivable Credit Card cos Clear entry View general journal Prev 4 of 12 Next >