?Question $2$ ?of $7$

$\frac{-}{2}$

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The ledger of Kingbird Company at the end of the current year shows Accounts Receivable $$72,000,$ ?Credit Sales $$800,000,$ ?and Sales Returns and Allowances $$35,000.$

$($a$)$ ?If Kingbird uses the direct write$-$off method to account for uncollectible accounts, journalize the entry if on July $7$ ?Kingbird determines that Matisse company's $$700$ ?balance is uncollectible.

$($b$)$ ?Assume Kingbird uses the allowance method to account for uncollectible accounts. 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$)$ ?Assume Kingbird uses the allowance method to account for uncollectible accounts. If Allowance for Doubtful Accounts has a debit balance of $$400$ ?in the trial balance, journalize the adjusting entry at December $31,$ ?assuming bad debts are expected to be $7\%$ ?of accounts receivable.

$($List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $O$ ?for the amounts.$)$

No$.$ ?Date

Account Titles and Explanation

Debit

Credit

$($a$)$ ?July $7?$

$?$

$($b$)$ ?Dec. $31?$

$?$

$($c$)$ ?Dec. $31?$

$?$

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