Mazie Supply Company uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $144,500, 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 \$2,457 credit balance before the adjustment. (b) a $723 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 $2,457 credit balance before the adiustment. Note: Enter debits before credits. (a) a $2,457 credit balance before the adjustment. (b) a $723 debit balance before the adjusiment. 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 $723 debit balance before the adfustment