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At each calendar year-end, Mazie Supply Co. uses the percent of accounts receivable method to estimate bad debts. On December 31, 2017, it has outstanding accounts receivable of $64,000, and it estimates that 4% will be uncollectible. Prepare the adjusting entry to record bad debts expense for year 2017 under the assumption that the Allowance for Doubtful Accounts has: (a) a $1,088 credit balance before the adjustment. (b) a $320 debit balance before the adjustment. View transaction list Journal entry worksheet 1 2 Prepare the adjusting entry to record bad debts expense for year 2017 under the assumption that the Allowance for Doubtful Accounts has a $1,088 credit balance before the adjustment. Note: Enter debits before credits. Debit Transaction General Journal Credit (a) View general journal Record entry Clear entry Journal entry worksheet 1 2 Prepare the adjusting entry to record bad debts expense for year 2017 under the assumption that the Allowance for Doubtful Accounts has a $320 debit balance before the adjustment. Note: Enter debits before credits Credit Transaction General Journal Debit (b) Record entry Clear entry View general journal