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Exercise E8-3
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.
Correct.
If Hixson uses the direct write-o* 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/Description Debit Credit
Dec. 31
Correct.
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
Bad debts expense
resp_0
$1,400
Accounts receivable-Fell
resp_0
$1,400

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(1) Dec. 31
(2) Dec. 31
Correct.
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
resp_0
$8,100
Allow ance for doubtful accounts
resp_0
$8,100
Bad debts expense
resp_0
$9,900
Allow ance for doubtful accounts
resp_0
$9,900
Bad debts expense
resp_0
$6,075

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Exercise E8-3 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. Correct. 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/Description Debit Credit Dec. 31 Correct. 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 (2) Dec. 31 Correct. 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 (2) Dec. 31 Exercise BE9-13 Correct. Information related to plant assets, natural resources, and intangibles at the end of 2011 for Spain Company is as follows: buildings $1,100,000; accumulated depreciation-buildings $650,000; goodwill $410,000; coal mine $500,000; accumulated depletion-coal mine $108,000. Complete the partial balance sheet of Spain Company for these items. (Lis ...
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