The ledger of Wainwright Company at the end of the current year shows Accounts Receivable $77,000; Credit Sales $918,000; and Sales Returns and Allowances $41,600.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)
| (a) | If Wainwright uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Wainwright determines that Hiller’s $890 balance is uncollectible. | |
| (b) | If Allowance for Doubtful Accounts has a credit balance of $940 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 $850 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 9% of accounts receivable. |
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