Marigold Corp. uses the percentage-of-receivables basis to record bad debt expense and concludes that 3% of accounts receivable will become uncollectible. Accounts receivable are $416,900 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,545. (a) (b) Prepare the adjusting journal entry to record bad debt expense for the year. If the allowance for doubtful accounts had a debit balance of $950 instead of a credit balance of $2,545, prepare the adjusting journal entry for bad debt expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually:) No. Account Titles and Explanation (a) Bad Debit Credit 429407 Allowance for Doubtful Accounts 429407 (b) Bad Debt Expense 429407 Allowance for Doubtful Accounts 429407 On December 31, 2021, when its Allowance for Doubtful Accounts had a debit balance of $1,521, Sheridan Company estimates that 9% of its accounts receivable balance of $105,300 will become uncollectible and records the necessary adjustment to Allowance for Doubtful Accounts. On May 11, 2022, Sheridan Company determined that B. Jared's account was uncollectible and wrote off $1,165. On June 12, 2022, Jared paid the amount previously written off. Prepare the journal entries on December 31, 2021, May 11, 2022, and June 12, 2022. (Credit account titles are automatically Indented when amount is entered. Do not indent manually. Record joumal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit > (To reinstate account previously written off)