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he ledger of Hixson Company at the end of the current year shows Accounts Receivable

he ledger of Hixson Company at the end of the current year shows Accounts Receivable $120,000, Sales $840,000, and Sales Return 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.

(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 netsales, 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 December31, assuming bad debts are expected to be (1) 0.75% of net sales,and (2) 6% of accounts receivable.

May 10 2018 View more View Less

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