Exercise 9-3 (Part Level Submission)

The ledger of Costello Company at the end of the current year shows Accounts Receivable $121,000, Sales Revenue $854,000, and Sales Returns and Allowances $31,000.

(a)

If Costello uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Costello determines that L. Dole's $2,100balance is uncollectible. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)