Cheyenne Corp. uses the percentage-of-receivables basis to record bad debt expense and concludes that 1% of accounts receivable will become uncollectible. Accounts receivable are $428,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $3,400. (a) Your answer is correct. Prepare the adjusting journal entry to record bad debt expense for the year. (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.) (b) Account Titles and Explanation Bad Debt Expense Allowance for Doubtful Accounts eTextbook and Media List of Accounts Debit 880 Credit 880 Attempts: 1 of 3 used If the allowance for doubtful accounts had a debit balance of $850 instead of a credit balance of $3,400, prepare the adjusting journal entry for bad debt expense. (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.) Account Titles and Explanation Debit Credit