Mazie Supply Co. uses the percent of accounts receivable method. On December 31, It has outstanding accounts receivable of

$79.000. 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 $1.343 credit balance before the adjustment.

(b) a $395 debit balance before the adjustment.

View transaction list Journal entry worksheet >