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Question - The ledger of Wainwright Company at the end of the current year shows Accounts Receivable $85,000; Credit Sales $967,000; and Sales Returns and Allowances $44,800.(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 $930 balance is uncollectible.
(b) If Allowance for Doubtful Accounts has a credit balance of $890 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 10% of accounts receivable.
(c) If Allowance for Doubtful Accounts has a debit balance of $530 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 10% of accounts receivable.
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