To record bad debt expense Beijing uses the percentage-of-receivables basis. It estimates that 2% of accounts receivable will become uncollectible. Accounts receivable are 400,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of 1,000. (a) Prepare the adjusting journal entry to record bad debt expense for the year. (b) If the allowance for doubtful accounts had a debit balance of 700 instead of a credit balance of 1,000, determine the amount to be reported for bad debt expense.