Question 2 of 6 1.56 / 2 a View Policies Show Attempt History Current Attempt in Progress Your answer is partially correct. The ledger of Blue Spruce Corp. at the end of the current year shows Accounts Receivable $68,000, Credit Sales $825,000, and Sales Returns and Allowances $39,100. Prepare journal entries for each separate scenario below. (a) If Blue Spruce Corp. uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Blue Spruce Corp. determines that Matisse's $500 balance is uncollectible. (b) If Allowance for Doubtful Accounts has a credit balance of $1,200 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 9% of accounts receivable. (c) If Allowance for Doubtful Accounts has a debit balance of $505 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 8% of accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (a) Bad Debt Expense 500 Accounts Receivable 500 (b) Bad Debt Expense 7800 Allowance for Doubtful Accounts 7800 (c) Bad Debt Expense 8505 Allowance for Doubtful Accounts 8505 e Textbook and Media List of Accounts Save for Later Attempts: 2 of 3 used Submit