Exerclse $7-13($Algo$)$ Percent of accounts recelvable method LO P$3$

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

$$97,500,$ 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:

$($d$)$ a $$1,658$ credit balance before the adjustment.

$($b$)$ a $$488$ deblt balance before the adjustment.