Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $117.000, 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 $1,989 credit balance before the adjustment. (b) a $585 debit balance before the adjustment. View transaction list Journal entry worksheet 1 2 > Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has a $1,989 credit balance before the adjustment Note: Enter debits before credits Credit Transaction Debit 2.691 General Journal Bad debts expense Allowance for doubtful accounts 2.691