Question - The ledger of Concord Corporation at the end of the current year shows Accounts Receivable $75,800; Credit Sales $818,100; and Sales Returns and Allowances $39,600.
(a) If Concord Corporation uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Concord Corporation determines that Matisse's $812 balance is uncollectible.
(b) If Allowance for Doubtful Accounts has a credit balance of $1,060 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 7% of accounts receivable.