Funnel Direct recorded $1,345,780 in credit sales for the year and $695,455 in accounts receivable. The company uses the Balance Sheet (percentage of receivable) method to account for bad debts and estimates that 4% of accounts receivable will be uncollectibleRecord the yearend adjusting entry for bad debts under the following two assumptions A. There was a previous credit balance of $13,888 in Allowance for Bad Debts B. There was a previous debit balance of $13,888 in Allowance for Bad Debts