Mazie Supply Company uses the percent of accounts receivable method. On December $31,$ it has outstanding accounts receivable of $$145,500,$ 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 $$2,474$ credit balance before the adjustment.

$($b$)$ a $$728$ debit balance before the adjustment.

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 $$2,474$ credit balance before the adjustment.

Note: Enter debits before credits.

$\backslash$table$[[$Transaction$,$General Journal,Debit,Credit$]$