The ledger of Monty Corp. at the end of the current year shows Accounts Receivable $78,000, Credit Sales $822,000, and Sales Returns and Allowances $38,100. Prepare journal entries for each separate scenario below. (a) (b) (c) If Monty Corp. uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Monty Corp. determines that Matisse's $500 balance is uncollectible. If Allowance for Doubtful Accounts has a credit balance of $1,300 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 12% of accounts receivable. If Allowance for Doubtful Accounts has a debit balance of $502 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 11% of accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit (a) (b) P Credit