The Accounts Receivable balance for Highland, Inc. at December 31, 2017, was $26,000. During 2018, Highland earned revenue of $453,000 on account and collected $324,000 on account. Highland wrote off $5,800 receivables as uncollectible. Industry experience suggests that uncollectible accounts will amount to 3% of accounts receivable. Read the requirements. Requirement 1. Assume Highland had an unadjusted $2,100 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.) Date Accounts and Explanation Dec. 31 Bad Debts Expense Allowance for Bad Debts Debit Credit 2,376 2.376 Recorded bad debts expense for the period. 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.) Date Accounts and Explanation Dec. 31 Bad Debts Expense Allowance for Bad Debts Debit Credit 6,076 6,076