The ledger of Costello Company at the end of the current year shows Accounts Receivable $144,100, Sales Revenue $844,400, and Sales Returns and Allowances $26,300.

1.) 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 $2,200 balance is uncollectible.

2.) If Allowance for Doubtful Accounts has a credit balance of $2,300 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 2% of net sales, and (2) 12% of accounts receivable.

3.) If Allowance for Doubtful Accounts has a debit balance of $320 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 2% of net sales and (2) 7% of accounts receivable.