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The ledger of Crane Company at the end of the current year shows Accounts Receivable $85,600; Credit Sales $875,040; and Sales Returns and Allowances $41,450.

(a) If Crane Company uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Crane Company determines that Matisses $823 balance is uncollectible. (b) If Allowance for Doubtful Accounts has a credit balance of $1,186 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 $510 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 8% of accounts receivable.

(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No. Account Titles and Explanation Debit Credit (a) enter an account title to record the first transaction enter a debit amount enter a credit amount enter an account title to record the first transaction enter a debit amount enter a credit amount (b) enter an account title to record the second transaction enter a debit amount enter a credit amount enter an account title to record the second transaction enter a debit amount enter a credit amount (c) enter an account title to record the third transaction enter a debit amount enter a credit amount enter an account title to record the third transaction enter a debit amount

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