Exercise 8-4 The ledger of Waterway Industries at the end of the current year shows Accounts Receivable $79,200; Credit Sales $827,070; and Sales Returns and Allowances $42,300. (a) If Waterway Industries uses the direct write-off method to account for uncollectible (b) If Allowance for Doubtful Accounts has a credit balance of $1,021 in the trial balance, (c) If Allowance for Doubtful Accounts has a debit balance of $500 in the trial balance accounts, journalize the adjusting entry at December 31, assuming Waterway Industries determines that Matisse's $853 balance is uncollectible. journalize the adjusting entry at December 31, assuming bad debts are expected to be 10% of accounts receivable. journalize the adjusting entry at December 31, assuming bad debts are expected to be 7% of accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually. No. Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS DOLL