Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $108,500, 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 $1,845 credit balance before the adjustment. (b) a $543 debit balance before the adjustment. View transaction list Journal entry worksheet > 2 1 Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has a $1,845 credit balance before the adjustment Note: Enter debits before credits Transaction General Journal Debit Credit (a) Record entry View general journal Clear entry