Exercise $9-13($Algo$)$ Percent of accounts receivable method LO P$3$

Mazie Supply Company uses the percent of accounts receivable method. On December $31,$ it has outstanding accounts

receivable of $$114,500,$ 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:

$($a$)$ a $$1,947$ credit balance before the adjustment.

$($b$)$ a $$573$ debit balance before the adjustment.