Requirements 1. Assume Highland had an unadjusted $2,500 credit balance in Allowance for Bad Debts at December 31, 2018. Journalize Highland's December 31, 2018, adjustment to record bad debts expense using the percent-of-receivables method. 2. Assume Highland had an unadjusted $1,600 debit balance in Allowance for Bad Debts at December 31, 2018. Journalize Highland's December 31, 2018, adjustment to record bad debts expense using the percent-of-receivables method. The Accounts Receivable balance for Highland Company at December 31, 2017, was $24,000. During 2018 , Highland earned revenue of $461,000 on account and collected $327,000 on account. Highland wrote off $5,500 receivables as uncollectible. Industry experience suggests that uncollectible accounts will amount to 3% of accounts receivable. Read thi Requirement 1. Assume Highland had an unadjusted \$2,500 credit balance in Allowance for Bad Debts at December 31, 2018. Journalize Highland's December 31, 2018, adjustment to record bad debts expense using the percent-of-receivables method. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Requirement 2. Assume Highland had an unadjusted $1,600 debit balance in Allowance for Bad Debts at December 31, 2018. Journalize Highland's December 31, 2018, adjustment to record bad debts expense using the percent-of-receivables method. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)