Exercise 9-3

The ledger of Costello Company at the end of the current year shows Accounts Receivable $145,000, Sales Revenue $843,000, and Sales Returns and Allowances $31,000.

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. Doles $2,300balance is uncollectible.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

Dec. 31

SHOW LIST OF ACCOUNTS

If Allowance for Doubtful Accounts has a credit balance of $2,900in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1)1% of net sales, and (2)11% of accounts receivable.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.

Date

Account Titles and Explanation

Debit

Credit

(1)Dec. 31

(2)Dec. 31

SHOW LIST OF ACCOUNTS

If Allowance for Doubtful Accounts has a debit balance of $310in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1)3% of net sales and (2)7% of accounts receivable.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.

Date

Account Titles and Explanation

Debit

Credit

(1)Dec. 31

(2)Dec. 31

Exercise 9-3

The ledger of Costello Company at the end of the current year shows Accounts Receivable $145,000, Sales Revenue $843,000, and Sales Returns and Allowances $31,000.

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. Doles $2,300balance is uncollectible.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

Dec. 31

SHOW LIST OF ACCOUNTS

If Allowance for Doubtful Accounts has a credit balance of $2,900in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1)1% of net sales, and (2)11% of accounts receivable.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.

Date

Account Titles and Explanation

Debit

Credit

(1)Dec. 31

(2)Dec. 31

SHOW LIST OF ACCOUNTS

If Allowance for Doubtful Accounts has a debit balance of $310in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1)3% of net sales and (2)7% of accounts receivable.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.

Date

Account Titles and Explanation

Debit

Credit

(1)Dec. 31

(2)Dec. 31