Exercise 8-4

The ledger of Concord Corporation at the end of the current year shows Accounts Receivable $75,800; Credit Sales $818,100; and Sales Returns and Allowances $39,600.

(a)If Concord Corporation uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Concord Corporation determines that Matisses $812balance is uncollectible.(b)If Allowance for Doubtful Accounts has a credit balance of $1,060in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be10% of accounts receivable.(c)If Allowance for Doubtful Accounts has a debit balance of $530in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be7% of accounts receivable.

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

No.

Account Titles and Explanation

Debit

Credit

(a)

(b)

(c)