The ledger of Hixson Company at the end of the current year shows Accounts Receivable $127, 200, Sales $ 130,000, and Sales Returns and Allowances $4,000. Instructions: a. If Allowance for Doubtful Accounts has a credit balance of $1,230 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 2% of net sales b. If Allowance for Doubtful Accounts has a debit balance of $910 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 6% of accounts entry at December 31, assuming bad debts are expected to be 6% of accounts receivable.

The ledger of Hixson Company at the end of the current year shows Accounts Receivable $127, 200, Sales $ 130,000, and Sales Returns and Allowances $4,000. Instructions: a. If Allowance for Doubtful Accounts has a credit balance of $1,230 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 2% of net sales b. If Allowance for Doubtful Accounts has a debit balance of $910 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 6% of accounts entry at December 31, assuming bad debts are expected to be 6% of accounts receivable.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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