Wildhorse Co.uses the percentage-of-receivables basis to record bad debt expense and concludes that3% of accounts receivable will become uncollectible. Accounts receivable are $382,600at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,613.

(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 $903instead of a credit balance of $2,613, prepare the adjusting journal entry for bad debt expense.