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Mazie Supply Co . uses the percent of accounts receivable method. On December 3 1 , it has outstanding accounts receivable of $ 4 9

Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $49,500, and it estimates that 4% will be uncollectible.
Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has:
(a) a $842 credit balance before the adjustment.
(b) a $248 debit balance before the adjustment.

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