Accounting
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Exercise 8-4
(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 $1,000 balance is uncollectible. | |||||||||||||||||||||||||||||
| (b) | If Allowance for Doubtful Accounts has a credit balance of $820 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 12% of accounts receivable. | |||||||||||||||||||||||||||||
| (c) |
If Allowance for Doubtful Accounts has a debit balance of $520 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 8% of accounts receivable.
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