The ledger of Costello Company at the end of the current year shows Accounts Receivable $130,000, Sales Revenue $849,000, and Sales Returns and Allowances $27,000. 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.

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) 3% of net sales, and (2) 10% of accounts receivable

3) If Allowance for Doubtful Accounts has a debit balance of $230 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) 7% of accounts receivable.