accounting 859

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Exercise 8-4

The ledger of Wainwright Company at the end of the current year shows Accounts Receivable $87,000; Credit Sales $905,000; and Sales Returns and Allowances $52,400. 
(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.   No. Account Titles and Explanation Debit Credit (a) [removed] [removed] [removed]   [removed] [removed] [removed] (b) [removed] [removed] [removed]   [removed] [removed] [removed] (c) [removed] [removed] [removed]   [removed] [removed] [removed]

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