Current Attempt in Progress

The ledger of Macarty Company at the end of the current year shows Accounts Receivable $$78,000,$ Credit Sales $$810,000,$ and Sales Returns and Allowances $$40,000.$ Prepare journal entries for each separate scenario below.

$($a$)$ If Macarty Company uses the direct write$-$off method to account for uncollectible accounts, journalize the adjusting entry at December $31,$ assuming Macarty Company determines that Matisse's $$900$ balance is uncollectible.

$($b$)$ If Allowance for Doubtful Accounts has a credit balance of $$1,100$ 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 $$500$ in the trial balance, journalize the adjusting entry at December $31,$ assuming bad debts are expected to be $8\%$ of accounts receivable.

$($Credit account titles are automatically indented when amount is entered. Do not indent manually.$)$

No$.$ Account Titles and Explanation

Debit

Credit