Mazie Supply Company uses the percent of accounts recelvable method. On December 31 , it has outslanding accounts recelvable of $106,000, 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 (d) a $1,802 credit balance before the adjustment. (b) a $530 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 $1,802 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 $530 debit balance before the adjustment. Note: Enter debits before credits