ACC 281 The ledger of Hixson Company at the end of the current year shows accounts

ACC 281 The ledger of Hixson Company at the end of the
current year shows accounts receivable 120,000,

ACC 281 E9-3 Journalize entries to record allowance for
doubtful accounts using two different bases.

ACC 281 Week Three

Individual Assignment ACC 281

Financial Accounting Transaction Analysis: Weygandt, J. J.,
Kimmel, P. D., & Kieso, D. E. (2008). Financial Accounting (6th ed.).
Hoboken, NJ: Wiley.

Axia College of University of Phoenix (UoP)

Individual Assignment

E9-3 Journalize entries to record allowance for doubtful
accounts using two different bases.

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 allowance
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 fells 1.400 balance is uncollectible.

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

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.