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Week+3+Individual+Assignments - 1 Running Head: CH. 9-10...

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1 Running Head: CH. 9-10 TEXTBOOK EXERCISES Ch. 9-10 Textbook Exercises Ricardo E. Mendoza University of Phoenix Debbie Luna ACC 281 Financial Accounting Transactions 5 October, 2010
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2 Chapter 9-10 Textbook Exercises 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. Instructions (a) 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. Date Account Debit Credit Dec 31 Bad Debt Expense 1,400 Accounts Receivable 1,400 (b) 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 Debit Credit Dec 31 Bad Debt Expense 6,000 Allowance for Doubtful Accounts 6,000 Date Account Debit Credit Dec 31 Bad Debt Expense 9,900 Allowance for Doubtful Accounts 9,900 (c) 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
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This note was uploaded on 11/01/2010 for the course ACC 281 281 taught by Professor Hong during the Fall '10 term at University of Phoenix.

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Week+3+Individual+Assignments - 1 Running Head: CH. 9-10...

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