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The ledger of Wainwright Company at the end

24 / 01 / 2019 Assignments

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The ledger of Wainwright Company at the end

The ledger of Wainwright Company at the end of the current year shows Accounts Receivable $80,000; Credit Sales $997,000; and Sales Returns and Allowances $59,600.(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 $970 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 $630 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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