Exercise 8-5 The ledger of Novak Corp. at the end of the current year shows Accounts Receivable $111,000; Sales Revenue $849,000; and Sales Returns and Allowances $23,200. Prepare journal entries for each separate scenario below. (a) If Novak Corp. uses the direct write-off method to account for uncollectible accounts, journalize the entry at December 31, assuming Novak Corp. determines that L. Dole's $1,300 balance is uncollectible. (b) If Allowance for Doubtful Accounts has a credit balance of $2,300 in the trial balance, journalize the adjusting entry at December 31, assuming uncollectible accounts are estimated to be 15% of accounts receivable. If Allowance for Doubtful Accounts has a debit balance of $202 in the trial balance, journalize the adjusting entry at December 31, assuming uncollectible accounts are estimated 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