8E1: M35525! Ltd uses the allowance method to record bad debts expense and concludes, uslng the agelng of accounts recelvable method, that 1% of accounts recelvable wlll become uncollectable. Accounts recehrable are $5oo ooo at the end of the year, and the Allowance for Doubtful Debts has a credlt balance of S3ooo. a. Prepare the adjustlngjournal entryI to record bad debts expense for the year. b. If the Allowance for Doubtful Debts had a deblt balance of Saoo Instead of a credlt balance of S3ooo, determlne the amount to be reported for bad debts expense