Kingston Co. uses the percentage-of-receivables basis to record bad debt expense. It estimates that 2% of accounts receivable will become uncollectible. Accounts receivable are $497,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $1,700. (a) Your answer is correct. Prepare the adjusting journal entry to record bad debt expense for the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Bad Debt Expense 8240 Allowance for Doubtful Accounts 8240 Click if you would like to Show Work for this question: Open Show Work * Your answer is incorrect. Try again. If the allowance for doubtful accounts had a debit balance of $880 instead of a credit balance of $1,700, determine the amount to be reported for bad debt expense. Bad Debts Expense I 9060 Click if you would like to Show Work for this question: Open Show Work