The ledger of Costello Company at the end of the current year shows Accounts Receivable $124,100, Sales Revenue $855,300, and Sales Returns and Allowances $25,300.

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 $1,500balance is uncollectible.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit

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If Allowance for Doubtful Accounts has a credit balance of $2,900in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1)2% of net sales, and (2)11% of accounts receivable.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.	Account Titles and Explanation	Debit	Credit
(1)
(2)

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If Allowance for Doubtful Accounts has a debit balance of $250in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1)1% of net sales and (2)7% of accounts receivable.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.	Account Titles and Explanation	Debit	Credit
(1)
(2)