M05 Ch 07 Homework i Sived Mazie Supply Company uses the percent of accounts receivable method. On December 31 , it has outstanding accounts receivable of $146,000, and it estimates that 3% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts. has: 7.5 points (d) a $2,482 credit balance before the adjustment. (b) a $730 debit balance before the adjustment. View transaction list View journal entry worksheet No Transaction General Joutnal Debit 1 (a) Bad debts expense 1,098 Allowance for doubtful accounts 1,898 (b) Bad debts expense 5,110