E8.5 (LO 2) The ledger of Costello Company at the end of the current year shows Accounts Receivable $110,000, Sales Revenue $840,000, and Sales Returns and Allowances $20,000. wollol as baja32919 ($03) 01.88 Instructions a. If Costello uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Costello determines that L. Dole's $1,400 balance is uncollectible. Journalize entries to record allowance for doubtful accounts using two different bases. 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 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 6% of accounts receivable,

E8.5 (LO 2) The ledger of Costello Company at the end of the current year shows Accounts Receivable Journalize entries to record $110,000, Sales Revenue $840,000, and Sales Returns and Allowances $20,000. allowance for doubtful accounts using two different bases. Instructions a. If Costello uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31 , assuming Costello determines that L. Dole'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 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 6% of accounts receivable. E8.5 (LO 2) The ledger of Costello Company at the end of the current year shows Accounts Receivable Journalize entries to record $110,000, Sales Revenue $840,000, and Sales Returns and Allowances $20,000. allowance for doubtful accounts using two different bases. Instructions a. If Costello uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31 , assuming Costello determines that L. Dole'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 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 6% of accounts receivable