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) Prepare the adjusting journal entry to record bad debt expense for the year (b) 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 Debit Credit