Exercise 8-4

The ledger of Marigold Corp. at the end of the current year shows Accounts Receivable $76,300; Credit Sales $825,710; and Sales Returns and Allowances $41,690.

(a)		If Marigold Corp. uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Marigold Corp. determines that Matisses $925 balance is uncollectible.
(b)		If Allowance for Doubtful Accounts has a credit balance of $1,180 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 $550 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 8% of accounts receivable.

Exercise 8-4 The ledger of Marigold Corp. at the end of the current year shows Accounts Receivable $76,300; Credit Sales $825,710; and Sales Returns and Allowances $41,690. (a) If Marigold Corp. uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Marigold Corp. determines that (b) If Allowance for Doubtful Accounts has a credit balance of $1,180 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 10 c If Allowance for Doubtful Accounts has a debit balance of $550 in the trial balance ournalize the adjusting entry at December 31, assuming bad debts are expected to be 8% of Exercise 8-11 (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit Click if you would like to Show Work for this question: Open Show Work VIDEO: APPLIED SKILLS