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Exercise 7-7 Percent of accounts receivable method LO P3 Mazie Supply Co. uses the percent of accounts receivable method. On December 31. it has outstanding accounts receivable of $133,500, and it estimates that 5% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has: (a) a $2,270 credit balance before the adjustment. (b) a $668 debit balance before the adjustment. View transaction list Journal entry worksheet Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has a $2,270 credit balance before the adjustment. Note: Enter debits before credits. Record entry Clear entry View general journal View transaction list Journal entry worksheet Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has a $668 debit balance before the adjustment. Note: Enter debits before credits. Record entry Clear entry View general journal Required information Problem 7-2A Estimating and reporting bad debts LO P2, P3 [The following information applies to the questions displayed below] At December 31, Hawke Company reports the following results for its calendar year. Cash sales 51,626,500 Credit sales $3,819,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable $1,157,157 debit Allowance for doubtful accounts $ 19,750 debit Problem 7-2A Part 2 2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet given the facts in part 13. currentasseis; _