Illl 6. Kingston Co. uses the percentageofreceivables basis to record bad debt expense. It estimates that 1% of accounts receivable will become uncollectible. Accounts receivable are $420,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $1,500. a. Prepare the adjustingjournal entry to record bad debt expense for the year. b. If the allowance for doubtful accounts had a debit balance of $300 instead of a credit balance of $1,500, determine the amount to be reported for bad debt expense