Novak Corp. uses the percentage$-$of$-$receivables basis to record bad debt expense.Novak Corp.

The company estimates that $2\%$ of accounts receivable will become uncollectible.

$1.$ Prepare the adjusting journal entry to record bad debt expense for the year.

Account Titles and Explanation Debit Credit

Bad Debt Expense $??$

Allowance for Doubtful Accounts $??$

$2.$ What is the ending $($adjusted$)$ balance in Allowance for Doubtful Accounts?