Exercise 8-4 Your answer is partially correct The ledger of...

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Exercise 8-4 Your answer is partially correct. The ledger of Wainwright Company at the end of the current year shows Accounts Receivable $78,000; Credit Sales $855,000; and Sales Returns and Allowances $56,200. (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 $1,100 balance is uncollectible. (b) If Allowance for Doubtful Accounts has a credit balance of $1,200 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 $850 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 10% of accounts receivable.

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