Mazie Supply Company uses the percent of accounts receivable method. On December 31 , it has outstanding accounts receivable of $142,500, and it estimates that 3% will be uncollectisle. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has: (a) a $2,423 credit balance before the adjustment. (b) a $713 debit balance before the adjustment. 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 $2,423 credit balance before the adjustment. Note: Enter debits before credits. 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 $713 debit balance before the adjustment. Note: Enter debits before credits