Question 1: The Accounts Receivable balance for Lake Company at December 31, 2022, was $20,000. During 2023, Lake earned revenue of $454,000 on account and collected $325,000 on account. Lake wrote off $5,600 receivables as uncollectible. Industry experience suggests that uncollectible accounts will amount to 5 percent of accounts receivable.Assume Lake had an unadjusted $2,700 credit balance in Allowance for Bad Debts at December 31, 2023. Journalize Lake’s December 31, 2023, adjustment to record bad debt expense using the percent-of-accounts-receivable method.Assume Lake had an unadjusted $2,400 debit balance in Allowance for Bad Debts at December 31, 2023. Journalize Lake’s December 31, 2023, adjustment to record bad debt expense using the percent-of-accounts-receivable method.