Practice Exercise 1 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.

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 $2,100 balance 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

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If Allowance for Doubtful Accounts has a credit balance of $2,800 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 1% of net sales, and (2) 12% 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

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If Allowance for Doubtful Accounts has a debit balance of $300 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 3% of net sales and (2) 8% 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