Reference no: EM132494229

Question - The leger of G.K. Reid Company at the end of the current year shows Accounts Receivable $120,000, Sales Revenue $840,000 and Sales Returns and Allowances $30,000.

1. If G.K. Reid uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming G.K. Reid determines that L.Gaga's $1,400 balance is uncollectible?

2. If Allowance for Doubtful Accounts has a credit balance of $2,100 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (a) 1% of net sales, and (b) 10% of accounts receivable?

3. If Allowance for Doubtful Accounts has a debit balance of $200 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (a) 0.75% of net sales, and (b) 6% of accounts receivable?