Bill LTd uses the allaowance method to record bad debts expense and conludes, using the aging of account receivable method, that 1% of accounts receivable (gross) will become uncollectable. Accounts receivable (gross) has a balance of $ 500,000 at the end of the year, and the allowance for doubtful debt has a credit balance of $3000.

a/ Prepare the adjusting journal entry to record bad debt expense for the year (narration is nor required).

b/ if the allowance for doughtful debts had a debit balance of $800 instead of a credit balance of $3000, determine the amount to be repoerted for bad debts expense.