Exercise 7-13 (Algo) Percent of accounts receivable method LO P3 Mazle Supply Company uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $58,500, and it estimates that 5% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has: (a) a $995 credit balance before the adjustment. (D) a $293 debit balance before the adjustment View transaction list Journal entry worksheet 1 2 Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has a $995 credit balance before the adjustment Nota: Enter debits before credits General Journal Debit Credit Transaction (0) 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 $293 debit balance before the adjustment. Note: Enter debits before credits. Transaction (b) General Journal Debit Credit