The Accounts Receivable balance for Southside Company at December 31, 2017, was $ 28000. During 2018, Southside earned revenue of $ 455 000 on account and collected $ 326000 on account. Southside wrote off $ 6400 receivables as uncollectible. Industry experience suggests that uncollectible accounts will amount to 2% of accounts receivable.

Require1: Assume Southside had an unadjusted $2200 CREDIT balance in Allowance for Bad Debts at December 31, 2018. Journalize Southside's December 31, 2018, adjustment to record bad debts expense using the percent-of-receivables method

Require2: Assume Southside had an unadjusted $2000 DEBIT balance in Allowance for Bad Debts at December 31, 2018. Journalize Southside's December 31, 2018, adjustment to record bad debts expense using the percent-of-receivables method