The ledger of Costello Company at the end of the current year shows Accounts Receivable $119,000, Sales Revenue $849,000, and Sales Returns and Allowances $22,000.

First Part: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 $1,800 balance is uncollectible. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Second Part: If Allowance for Doubtful Accounts has a credit balance of $2,400 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. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Third Part: If Allowance for Doubtful Accounts has a debit balance of $220 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. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)