Question 2 The ledger of Sheridan Company at the end of the current year shows Accounts Receivable $84,500; Credit Sales $756,230; and Sales Returns and Allowances $37,220. (a) If Sheridan Company uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Sheridan Company determines that Matisses $893 balance is uncollectible. (b) If Allowance for Doubtful Accounts has a credit balance of $1,107 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 10% of accounts receivable. (c) If Allowance for Doubtful Accounts has a debit balance of $480 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 8% of accounts receivable.