The ledger of Costello Company at the end of the current year shows Accounts Receivable $122,600, Sales Revenue $847,600, and Sales Returns and Allowances $24,200.
If Costello uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Costello determines that L. Dole's $2,200 balance is uncollectible.
