Questions: The ledger of Kingbird Company at the end of the current year shows Accounts Receivable 80,000, Credit Sales 813,000, and Sales Returns and Allowances 40,000. Prepare journal entries for each separate scenario below. (a) If Kingbird uses the direct write-off method to account for uncollectible accounts, journalize the entry at December 15 if Kingbird determines that Matisse's 1,300 balance is uncollectible. (b) If Allowance for Doubtful Accounts has a credit balance of 1,200 in the trial balance, journalize the adjusting entry at December 31, assuming uncollectibles are expected to be 11% of accounts receivable. (c) If Allowance for Doubtful Accounts has a debit balance of 499 in the trial balance, journalize the adjusting entry at December 31, assuming uncollectibles are expected to be 8% of accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Date Account Titles and Explanation

To address the scenarios provided for Kingbird Company, we need to prepare journal entries based on the information given. Let's go through each scenario step by step:

When using the direct write-off method, uncollectible accounts are written off directly against income when they are deemed uncollectible. For the scenario where Matisse's $1,300 balance is determined to be uncollectible on December 15, the journal entry would be:

Date: December 15

• Debit: Bad Debt Expense $1,300
• Credit: Accounts Receivable - Matisse $1,300

Explanation: This entry records the write-off of Matisse's account as uncollectible, directly impacting the income statement by increasing the bad debt expense.

If the Allowance for Doubtful Accounts has a credit balance of $1,200 and uncollectibles are expected to be 11% of accounts receivable, we first calculate the required balance in the allowance account:

1. Accounts Receivable: $80,000
2. Expected Uncollectibles (11%): $80,000 * 11% = $8,800

Since the allowance account already has a credit balance of $1,200, the adjusting entry needed is:

• Required Allowance Balance: $8,800
• Current Credit Balance: $1,200
• Adjustment Needed: $8,800 - $1,200 = $7,600

Date: December 31

• Debit: Bad Debt Expense $7,600
• Credit: Allowance for Doubtful Accounts $7,600

Explanation: This entry adjusts the allowance for doubtful accounts to reflect the expected uncollectibles, impacting the income statement by increasing the bad debt expense.

If the Allowance for Doubtful Accounts has a debit balance of $499 and uncollectibles are expected to be 8% of accounts receivable, we calculate the required balance in the allowance account:

1. Accounts Receivable: $80,000
2. Expected Uncollectibles (8%): $80,000 * 8% = $6,400

Since the allowance account has a debit balance of $499, the adjusting entry needed is:

• Required Allowance Balance: $6,400
• Current Debit Balance: $499
• Adjustment Needed: $6,400 + $499 = $6,899

Date: December 31

• Debit: Bad Debt Expense $6,899
• Credit: Allowance for Doubtful Accounts $6,899

Explanation: This entry adjusts the allowance for doubtful accounts to reflect the expected uncollectibles, impacting the income statement by increasing the bad debt expense.

These journal entries ensure that Kingbird Company accurately reflects its expected uncollectible accounts in its financial statements.