Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $105,000, and it estimates that 5% 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 $1,785 credit balance before the adjustment. (b) a $525 debit balance before the adjustment. View transaction list Journal entry worksheet Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has a $1,785 credit balance before the adjustment. Note: Enter debits before credits. Transaction General Jou Debit Credit (a) View transaction list Journal entry worksheet Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has a $525 debit balance before the adjustment. Note: Enter debits before credits. General Journal Debit Credit Transaction (b) Record entry Clear entry View general Journal