The ledger of Windsor, Inc. at the end of the current year shows Accounts Receivable $84,000; Credit Sales $830,000; and Sales R

Question

2 years ago

8

The ledger of Windsor, Inc. at the end of the current year shows Accounts Receivable $84,000; Credit Sales $830,000; and Sales R

eturns and Allowances $44,000. (a) If Windsor uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Windsor determines that Matisse’s $800 balance is uncollectible. (b) If Allowance for Doubtful Accounts has a credit balance of $1,450 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 11% of accounts receivable. (c) If Allowance for Doubtful Accounts has a debit balance of $400 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 9% of accounts receivable.

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