Exercise 7-6 Percent of accounts receivable method LO P3 At each calendar year-end, Mazie Supply Co. uses the percent of accounts receivable method to estimate bad debts. On December 31, it has outstanding accounts receivable of $94,500, and it estimates that 3% will be uncollectible. Prepare the adjusting entry to record bad debts expense for the year ended December 31 under the assumption that the Allowance for Doubtful Accounts has: (a) a $1,607 credit balance before the adjustment (b) a $473 debit balance before the adjustment View transaction list Journal entry worksheet 1 2 Prepare the adjusting entry to record bad debts expense for the year ended December 31 under the assumption that the Allowance for Doubtful Accounts has a $1,607 credit balance before the adjustment. Note: Enter debits before credits Date General Journal Debit Credit Prey 1 of 3 FR Next > ry worksheet