The ledger of Wainwright Company at the end
The ledger of Wainwright Company at the end of the current year shows Accounts Receivable $80,000; Credit Sales $997,000; and Sales Returns and Allowances $59,600. (a) If Wainwright uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Wainwright determines that Hiller’s $1,000 balance is uncollectible. (b) If Allowance for Doubtful Accounts has a credit balance of $970 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 10% of accounts receivable. (c) If Allowance for Doubtful Accounts has a debit balance of $630 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 8% of accounts receivable.
