Exercise 8-05 The ledger of Skysong, Inc. at the end of the current year shows...
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Accounting
Exercise 8-05 The ledger of Skysong, Inc. at the end of the current year shows Accounts Receivable $112,000; Sales Revenue $849,000; and Sales Returns and Allowances $20,000. (a) If Skysong uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Skysong determines that L. Dole's $1,700 balance is uncollectible. (b) If Allowance for Doubtful Accounts has a credit balance of $2,600 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 $202 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 7% of accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit No. Account Titles and Explanation (a) (b) (c)
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