The following represent different scenarios for Larkspur Company. Prior to any year-end adjusting entries, Larkspur Company had balance in Accounts Receivable of $142,000. Credit sales during the period were $790,000, and Sales Returns and Allowances were $16,500 Your answer is correct If Larkspur Company uses the direct write-off method to account for uncollectible accounts, journalize the entry if on May 8 Larkspur determined that Randal Company's $620 balance is uncollectible. (List debit entry before credit entry. If no entry is required, select " No Entry" for the occount titles and enter O for the amounts. Credit occount titles are automatically indented when the amount is entered. Do not indent manually.) Assume Larkspur Company uses the allowance method to account for uncollectible accounts. If Allowance for Doubtful Accounts has a debit balance of $920 in the trial balance, journalize the adjusting entry at December 31 , assuming bad debts are expected to be 10% of Accounts Receivable. (List debit entry before credit entry. If no entry is required, select " No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) has a credit balance of $1,160 in the trial balance, journalize the adjusting entry at December 31 , assuming bad debts are expected to be 6% of Accounts Receivable. (List debit entry before credit entry. If no entry is required, select " No Entry" for the occount titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)