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Mazie Supply Company uses the percent of accounts receivable method. On December 3 1 , it has outstanding accounts receivable of $ 6 4 ,

Mazie Supply Company uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $64,000, 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 $1,088 credit balance before the adjustment.
(b) a $320 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 $320 debit balance before the adjustment.
Note: Enter debits before credits.
\table[[Transaction,General Journal,Debit,Credit],[(b),,,],[,,,],[,,,],[,,,],[,,,],[,,,]]
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