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  3. 3)at december 31, 2010, the trial balance of worce

3)At December 31, 2010, the trial balance of Worcester Company contained the following amounts before...

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Accounting

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3)At December 31, 2010, the trial balance of Worcester Company contained the following amounts before adjustment Debits $385,000 Credits Accounts receivable Allowance for doubtful accounts Sales $2,000 950,000 Based on the information given, which method of accounting for bad debts is Worcester Company using-the direct write-off method or the allowance method? Prepare the adjusting entry at December 31, 2010, for bad debts expense under each of the following independent assumptions (1) An aging schedule indicates that $11.750 of accounts receivable will be uncollectible. (2) The company estimates that 1% of sales will be uncollectible, Repeat the question above assuming that instead of a credit balance there is a $2,000 debit balance in Allowance for Doubtful Accounts. During the next month, January 2011, a $3,000 account receivable is written off as uncollectible Prepare the journal entry to record the write-off

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