Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $89,000, and it estimates that 2% 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 $1,513 credit balance before the adjustment.

(b) a $445 debit balance before the adjustment.

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 $1,513 credit balance before the adjustment.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
(a)

• Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has a $445 debit balance before the adjustment.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
(b)