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

$($a$)$ Bad Debt Expense

$($b$)$ Bad Debt Expense

$($c$)$ Credit

Allowance for Doubtful Accounts