E8-3 The ledger of Elburn ASA at the end of the current year shows Accounts Receivable 110,000, Sales Revenue 840,000, and Sales Returns and Allowances 28,000. Instructions (a) If Elburn uses the direct write-off method to account for uncollectible accounts, jour- nalize the adjusting entry at December 31, assuming Elburn determines that T. Thum's 1,500 balance is uncollectible. (b) If Allowance for Doubtful Accounts has a credit balance of 2,500 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 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. balance,

E8-3 The ledger of Elburn ASA at the end of the current year shows Accounts Receivable 110,000, Sales Revenue 840,000, and Sales Returns and Allowances 28,000. Instructions (a) If Elburn uses the direct write-off method to account for uncollectible accounts, jour- nalize the adjusting entry at December 31, assuming Elburn determines that T. Thum's 1,500 balance is uncollectible. (b) If Allowance for Doubtful Accounts has a credit balance of 2,500 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. E8-3 The ledger of Elburn ASA at the end of the current year shows Accounts Receivable 110,000, Sales Revenue 840,000, and Sales Returns and Allowances 28,000. Instructions (a) If Elburn uses the direct write-off method to account for uncollectible accounts, jour- nalize the adjusting entry at December 31, assuming Elburn determines that T. Thum's 1,500 balance is uncollectible. (b) If Allowance for Doubtful Accounts has a credit balance of 2,500 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