Mazie Supply Company uses the percent of accounts recelvable method. On December 31 , it has outstanding accounts recelvable of $141,500, 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 Doubtul Accounts has: (b) $2,406 credit balance before the adjustment. (b) a $708 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 $2,406 credit balance before the sofustiment. Mazie Supply Company uses the percent of accounts receivable method. On December 31 , it has outstanding ac $141,500, 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 has: (a) a $2,406 credit balance before the adjustment. (b) a $708 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 $708 debit balance before the adjustment. Note: Enter debits before credits