Mazie Supply Company uses the percent of accounts receivable method. On December $31,$ it has outstanding accounts receivable of

$$104,000,$ and it estimates that $3\%$ 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 $$1,768$ credit balance before the adjustment.

$($b$)$ a $$520$ debit balance before the adjustment.

Answer is complete but not entirely correct.