The ledger of Nixon Company at the end of the current year shows Accounts Receivable $180,000, Sales $1,800,000, and Sales Returns and Allowances $60,000. Instructions (a) If Nixon uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Nixon determines that Willies $2,900 balance is uncollectible. (b) If Allowance for Doubtful Accounts has a credit balance of $4,300 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) 10% of accounts receivable. (c) If Allowance for Doubtful Accounts has a debit balance of $410 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 0.75% of net sales and (2) 6% of accounts receivable. Record the following transactions for Olympia Co. in the general journal. 2010 May 1 Received a $45,000, 1-year, 10% note in exchange for John Pulaskis outstanding accounts receivable. Dec. 31 Accrued interest on the Pulaski note. Dec. 31 Closed the interest revenue account. 2011 May 1 Received principal plus interest on the Pulaski note. (No interest has been accrued in 2011.)