Mazie Supply Company uses the percent of accounts receivable method. On December $31,$ it has outstanding accounts receivable of $$127,500,$ and it estimates that $6\%$ 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 $$2,168$ credit balance before the adjustment.

$($b$)$ a $$638$ debit balance before the adjustment.