Exercise 8-4

The ledger of Blossom Company at the end of the current year shows Accounts Receivable $72,400; Credit Sales $784,350; and Sales Returns and Allowances $36,080.

(a)		If Blossom Company uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Blossom Company determines that Matisses $810 balance is uncollectible.
(b)		If Allowance for Doubtful Accounts has a credit balance of $1,157 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 $450 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 7% of accounts receivable.
How would this be journalied? thanks