At December 31, 2015, the trial balance of Darby Company contained the following amounts before adjustment. Credits Debits $376,500 Accounts Receivable Allowance for Doubtful Accounts Sales Revenue $ 1,000 956,800 (a) Your answer is correct. Based on the information given, which method of accounting for bad debts is Darby Company using-the direct write-off method or the allowance method? Allowance method SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT (b) -(e) (b) Prepare the adjusting entry at December 31, 2015, for bad debt expense under each of the following independent assumptions. (1) An aging schedule indicates that $12,100 of accounts receivable will be uncollectible. (2) The company estimates that 1% of sales will be uncollectible. (c) Repeat part (b) assuming that instead of a credit balance there is an $1,000 debit balance in Allowance for Doubtful Accounts. (d) During the next month, January 2016, a $3,100 account receivable is written off as uncollectible. Prepare the journal entry to record the write-off. (e) Repeat part (d) assuming that Darby uses the direct write-off method instead of the allowance method in accounting for uncollectible accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit No Account Titles and Explanation (b) (1) (2) (c) (1) (2) (d) (e)