lazie Supply Co. uses the percent of accounts receivable method. On December 31 , it has outstanding accounts receivable of 63,000 , and it estimates that 6% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts (a) a $1,071 credit balance before the adjustment. (b) a $315 debit balance before the adjustment. Journal entry worksheet Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has a $1,071 credit balance before the adjustment. Note: Enter debits before aredits. Journal entry worksheet Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has a $315 debit balance before the adjustment. Note: Enter debits before credits