chap 8 Reporting and analyzing recievables

The ledger of Metlock Company at the end of the current year shows Accounts Receivable $88,000, Credit Sales $855,000, anu Salies Returns and Allowances $43,000. (a) If Metlock uses the direct write-off method to account for uncollectible accounts, journalize the entry if on July 7 Metlock determines that Matisse company's $800 balance is uncollectible. (b) Assume Metlock uses the allowance method to account for uncollectible accounts. If Allowance for Doubtful Accounts has a credit balance of $1,450 in the trial balance, journalize the adjusting entry at December 31 , assuming bad debts are expected to be 10% of accounts receivable. (c) Assume Metlock uses the allowance method to account for uncollectible accounts. If Allowance for Doubtful Accounts has a debit balance of $550 in the trial balance, journalize the adjusting entry at December 31 , assuming bad debts are expected to be 8% of accounts receivable. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Date Account Titles and Explanation Debit Credit (a) July 7 (b) Dec. 31 (c) Dec. 31 eTextbook and Media List of Accounts Savefor Later Attempts: 0 of 5 used Submit