Blue Spruce Co, uses the percentage-of-receivables basis to record bad debt expense and concludes that 2% of accounts receivable will become uncollectible. Accounts recelvabie are $402,000 at the end of the year, and the allowance for doubtrut accounts has a credit balance of $2.723, (a) Prepare the adjusting journal entry to record bad debt expense for the year. (b) If theallowance for doubtful aceounts had a debit balance of $904 instead of a eredit balance of $2.723, prepare the adjusting joumal entry for bad debt expense. (List ail debit entries before credit entries. Credit account titles are outomatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Blue Spruce Co, uses the percentage-of-receivables basis to record bad debt expense and concludes that 2% of accounts receivable will become uncollectible. Accounts recelvabie are $402,000 at the end of the year, and the allowance for doubtrut accounts has a credit balance of $2.723, (a) Prepare the adjusting journal entry to record bad debt expense for the year. (b) If theallowance for doubtful aceounts had a debit balance of $904 instead of a eredit balance of $2.723, prepare the adjusting joumal entry for bad debt expense. (List ail debit entries before credit entries. Credit account titles are outomatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)