Exercise 8-4 The ledger of Novak Corp. at the end of the current year shows Accounts Receivable $85,400; Credit Sales $833,970; and Sales Returns and Allowances $36,680. (a) If Novak Corp. uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming (b) If Allowance for Doubtful Accounts has a credit balance of $1,206 in the trial balance, journalize the adjusting entry at December 31, assuming (c) If Allowance for Doubtful Accounts has a debit balance of $530 in the trial balance, journalize the adjusting entry at December 31, assuming (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Novak Corp. determines that Matisse's $949 balance is uncollectible bad debts are expected to be 9% of accounts receivable bad debts are expected to be 9% of accounts receivable. Debit Credit