Bonita Co$.$ uses the percentage$-$of$-$receivables basis to record bad debt expense and concludes that $4\%$ of accounts receivable will become uncollectible. Accounts receivable are $$384,400$ at the end of the year, and the allowance for doubtful accounts has a credit balance of $$2,908.$

$($a$)$ Prepare the adjusting journal entry to record bad debt expense for the year.

$($b$)$ If the allowance for doubtful accounts had a debit balance of $$954$ instead of a credit balance of $$2,908,$ prepare the adjusting journal entry for bad debt expense.

$($List all debit entries before credit entries. Credit account titles are automatically 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.$)$

No$.$ Account Titles and Explanation

Debit

Credit

$($a$)$

$($b$)$