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Homework - Accounting for Receivables Saved 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 $107.500, 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 $1,828 credit balance before the adjustment. ) (b) a $538 debit balance before the adjustment View transaction list Journal entry worksheet