CALCULATOR FULL SCREEN PRINTER VERSION 4 BACK NEXT Exercise 8-3 The ledger of Costello Company at the end of the current year shows Accounts Receivable $112,500, Sales Revenue $845,100, and Sales Returns and Allowances $25,200. If Costello uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Costello determines that L. Dole's $2,000 balance is uncollectible. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT If Allowance for Doubtful Accounts has a credit balance of $2,500 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 3% of net sales, and (2) 11% of accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit No. Account Titles and Explanation (1) (2) SHOW LIST OF ACCOUNTS LINK TO TEXT If Allowance for Doubtful Accounts has a debit balance of $290 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 2% of net sales and (2) 7% of accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit No. Account Titles and Explanation (1) (2) SHOW LIST OF ACCOUNTS LINK TO TEXT