The ledger of Costello Company at the end of the current year shows Accounts Receivable $150,000, Sales Revenue $841,000, and Sales Returns and Allowances $31,000.

(a) If Costello uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Costello determines that L. Doles $1,700 balance is uncollectible. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(b) If Allowance for Doubtful Accounts has a credit balance of $2,200 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 3% of net sales, and (2) 12% of accounts receivable.

(c) If Allowance for Doubtful Accounts has a debit balance of $300 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 1% of net sales and (2) 8% of accounts receivable.