Question 1 The ledger of Metlock Company at the end of the current year shows Accounts Receivable $141,000, Sales Revenue $844,000, and Sales Returns and Allowances $26,000. Journalize the following independent situations. (a) Your answer is correct. If Metlock uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Metlock determines that L. Dole's $2,300 balance is uncollectible. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Dec 31 Bad Debt Expense 2300 Accounts Receivable SHOW LIST OF ACCOUNTS SHOW ANSWER UNK TO TECT (b) If Allowance for Doubtful Accounts has a credit balance of $3,100 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 10% of accounts receivable. (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 LINK TO TEXT