Description of this paper

E9-3 The ledger of Hixson Company at the end of t...

Description

Solution


Question

E9-3 The ledger of Hixson Company at the end of the current year shows Accounts Receivable $120,000, Sales $840,000, and Sales Returns and Allowances $30,000. If Hixson uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Hixson determines that Fell's $1,400 balance is uncollectible. 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 (1) 1% of net sales, and (2) 10% of accounts receivable. 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 (1) 0.75% of net sales and (2) 6% of accounts receivable.,It came back as being incorrect when sales was selected. The right answer was cash. E9-9 (a) Date Account / Description Debit Credit Jan. 15 Accounts receivable $18,000 Sales $18,000 Jan. 20 Cash ($4,300 - $86) $4,214 Service charge expense ($4,300 ? 2%) $86 Sales $4,300 Feb. 10 Cash $10,000 Accounts receivable $10,000 Feb. 15 Accounts receivable ($8,000 ? 1%) $80 Interest revenue,Please disregard previous message. It does not apply to this problem. Not sure why it ended up being communicated here.,Incorrect. If Allowance for Doubtful Accounts has a credit balance of $2,100 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 1% of net sales, and (2) 10% of accounts receivable. Date Account / Description Debit Credit (1) Dec. 31(acct provided incorrect)$ 8100 (acct provide incorrect) $ 8100 (2) Dec. 31 acct. provide incorrect $ 9900 (acct provide incorrect) $ 9900 Incorrect. If Allowance for Doubtful Accounts has a debit balance of $200 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 0.75% of net sales and (2) 6% of accounts receivable. Date Account / Description Debit Credit (1) Dec. 31 Bad debts expense$ 6075 (acct provide incorrect)$ 6075 (2) Dec. 31 Bad debts expense$ 7400 (acct provide incorrect)$ 7400 The available account options are as follows: - interest revenue - allowance for doubtful accounts - sales discount - cash - merchandise inventory - sales - accts. rec - accts. payable - sales refunds and allowances - bad debts expenses,Understood. 7 PM,Again, thank you for your help and clarification.

 

Paper#8113 | Written in 18-Jul-2015

Price : $25
SiteLock