Mazie Supply Company uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $95,500, and it estimates that 2% 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 $1,624 credit balance before the adjustment. (b) a $478 debit balance before the adjustment. View transaction list 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 $1,624 credit balance before the adjustment. Note: Enter debits before credits. Transaction General Journal Credit Debit 1,241 (a) Allowance for doubtful accounts 1,241 Mazie Supply Company uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $95,500, and it estimates that 2% 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 $1,624 credit balance before the adjustment. (b) a $478 debit balance before the adjustment. View transaction list 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 $478 debit balance before the adjustment. Note: Enter debits before credits. Transaction Credit General Journal Accounts receivable-Credit Card companies Debit 3,343 (b) Allowance for doubtful accounts 3,343