The ledger of Costello Company at the end of the current year shows Accounts Receivable $128,100, Sales Revenue $842,900, and Sales Returns and Allowances $25,000. Your answer is partially correct. Try again. 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. Dole's $1,600 balance is uncollectible. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)