Oriole Company uses the percentage$-$of$-$receivables basis to record bad debt expense and concludes that $2\%$ of accounts receivable will become uncollectible. Accounts receivable are $$620,000$ at the end of the year, and the allowance for doubtful accounts has a credit balance of $$3,320.$

Prepare the adjusting journal entry to record bad debt expense for the year. $($Credit account titles are automatically indented when amount is entered. Do not indent manually.$)$

Account Tities and Explanation

Debit

Credit

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List of Accounts

If the allowance for doubtful accounts had a debit balance of $$800$ instead of a credit balance of $$3,320,$ prepare the adjusting journal entry for bad debt expense. $($Credit account titles are automatically indented when amount is entered. Do not indent manually.$)$

Account Tities and Explanation

Debit

Credit