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The ledger of Sheffield Corp. at the end of the current year shows Accounts Receivable $ 80,300; Credit Sales $ 769,390; and Sales Returns and
The ledger of Sheffield Corp. at the end of the current year shows Accounts Receivable $ 80,300; Credit Sales $ 769,390; and Sales Returns and Allowances $ 41,700. (a) If Sheffield Corp. uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Sheffield Corp. determines that Matisse's $ 820 balance is uncollectible. (b) If Allowance for Doubtful Accounts has a credit balance of $ 1,112 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 11% of accounts receivable. (c) If Allowance for Doubtful Accounts has a debit balance of $ 450 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 9% of accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (a) (b) No. Account Titles and Explanation Debit Credit (a) (b) (c)
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