Problem: The ledger of Elburn Company at the end of the current year shows Accounts Receiv-able $110,000, Sales $840,000, and Sales Returns and Allowances $28,000. Instructions:
(a) If Elburn uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31. assuming Elbum determines that Copp's $1,400 bal-ance is uncollectible.
(b) If Allowance for Doubtful Accounts has a credit balance of $2,100 in the trial balance, jour-nalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 1% of net sales, and (2) 10% of accounts receivable.
(c) If Allowance for Doubtful Accounts has a debit balance of $200 in the trial balance, jour-nalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 0.75% of net sales and (2) 6% of accounts receivable.