At the end of each year, Dutch Supply Co$.$ uses the simplified balance sheet approach $($i$.$e$.,$ percentage of accounts receivable$)$ to estimate bad debts. On December $31,2023,$ it has outstanding accounts receivable of $$163,000$ and estimates that $3\mathrm{.}5\%$ will be uncollectible.

Required:

a$.$ Give the entry to record bad debt expense for $2023$ under the assumption that the Allowance for Doubtful Accounts has a $$1,990$ debit balance before the adjustment.

Journal entry worksheet

$1$

Record the entry for estimated bad debts.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$December $31,2023,,,],[,,,],[,,,]]$

b$.$ Give the entry under the assumption that the Allowance for Doubtful Accounts has a $$1,990$ credit balance before the adjustment.

Journal entry worksheet

$1$

Record the entry for estimated bad debts.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$December $31,2023,,,],[,.,,],[,,,],[,,,],[,,,],[,,,]]$