The ledger of Elburn Company at the end of the current year shows Accounts Receivable

$110,000, Sales $840,000. and Sales Returns and Allowances $28,000.

Instructions

(a) If Elburn uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31. assuming Elburn determines that Copp's $1,400 balance is uncollectible.

(b) If Allowance for Doubtful Accounts has a credit balance of $2,100 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 1%

of net sales, and (2) 10% of accounts receivable.

(c) If Allowance for Doubtful Accounts has a debit balance of $200 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1)0.75%

of net sales and (2) 6% of accounts receivable.