Exercise 8-7 Bad debt expense LO2, 3 CHECK FIGURE: a. Bad Debt Expense = $7,450 At the end of each year, Dutch Supply Co. uses the simplified balance sheet approach (i.e., percentage of ac- counts receivable) to estimate bad debts. On December 31, 2020, it has outstanding accounts receivable of $158,000 and estimates that 3.5% will be uncollectible. Required a. Give the entry to record bad debt expense for 2020 under the assumption that the Allowance for Doubtful Accounts has a $1,920 debit balance before the adjustment. b. Give the entry under the assumption that the Allowance for Doubtful Accounts has a $1,920 credit balance before the adjustment