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The ledger of Tamarisk, Inc. at the end of the current year shows Accounts Receivable $87,000; Credit Sales $815,000; and Sales Returns and Allowances $39,000
The ledger of Tamarisk, Inc. at the end of the current year shows Accounts Receivable $87,000; Credit Sales $815,000; and Sales Returns and Allowances $39,000 (a) (b) If Tamarisk uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Tamarisk determines that Matisse's $850 balance is uncollectible. If Allowance for Doubtful Accounts has a credit balance of $1,250 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 10% of accounts receivable. If Allowance for Doubtful Accounts has a debit balance of $600 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 8% of accounts receivable. (c) Prepare journal entries to record the above transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation No. Date (a) Dec. 31 Debit Credit (b) Dec. 31 (o Dec. 31
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