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Do It! Review 8-02a Kingbird has been in business several years. At the end of the current year, the unadjusted trial balance shows: $336,000 Dr. Accounts Receivable 2,287,000 Cr Sales Revenue 6,006 Cr Allowance for Doubtful Accounts Bad debts are estimated to be 6% of receivables. Prepare the entry to adjust Allowance for Doubtful Accounts. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Exercise 8-05 The ledger of Shamrock, Inc. at the end of the current year shows Accounts Receivable $89,000; Credit Sales $845,000; and Sales Returns and Allowances $38,000. (a) If Shamrock uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Shamrock determines that Matisse's $750 balance is uncollectible (b) If Allowance for Doubtful Accounts has a credit balance of $1,300 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 $500 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 99% of accounts receivable. Prepare journal entries to record the above transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit No. Date (a) Dec. 31 (b) Dec. 31 (c) Dec. 31 Do It! Review 8-02a Kingbird has been in business several years. At the end of the current year, the unadjusted trial balance shows: $336,000 Dr. Accounts Receivable 2,287,000 Cr Sales Revenue 6,006 Cr Allowance for Doubtful Accounts Bad debts are estimated to be 6% of receivables. Prepare the entry to adjust Allowance for Doubtful Accounts. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Exercise 8-05 The ledger of Shamrock, Inc. at the end of the current year shows Accounts Receivable $89,000; Credit Sales $845,000; and Sales Returns and Allowances $38,000. (a) If Shamrock uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Shamrock determines that Matisse's $750 balance is uncollectible (b) If Allowance for Doubtful Accounts has a credit balance of $1,300 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 $500 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 99% of accounts receivable. Prepare journal entries to record the above transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit No. Date (a) Dec. 31 (b) Dec. 31 (c) Dec. 31

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