Exercise 7-13 (Algo) Percent of accounts receivable method LO P3 Mazle Supply Compony uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $116.000, and it estimates that 3% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has: (b) a $1,972 credit balance before the adjustment. (b) a $580 debit balance before the adjustment. Journal entry worksheet Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has a $1,972 credit balance before the adjustment. Note: Enter debits before credis. (a) a $1,972 credit balance before the adjustment. (b) a $580 debit balance before the adjustment. Journal entry worksheet Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has a \$580 debit balance before the adjustment. Note: Enter debits before credits