ACC 557 Chapter 9 (E9-3, E9-6, E9-9, E9-12, P9-5A, P9-6A) PLEASE DOWNLOAD HEREQuestion Chapter 9-3The ledger of Hixson Company at the end of the current year shows AccountsReceivable $120,000, Sales $840,000, and Sales Returns and Allowances$30,000.Question E9-6On December 31, 2008, Jarnigan Co. estimated that 2% of its net sales of$400,000 will become uncollectible. The company recorded this amount as anaddition to Allowance for Doubtful Accounts. On May 11, 2009, Jarnigan Co.determined that Terry Fryes account was uncollectible and wrote off $1,100. OnJune 12, 2009, Fryes paid the amount previously written off.InstructionsPrepare the journal entries on December 31, 2008, May 11, 2009, and June 12,2009.Question 9-9Topeka Stores accepts both its own and national credit cards. During the year thefollowing selected summary transactions occurred.Jan.15Made Topeka credit card sales totaling $18,000. (There were no balances prior toJanuary 15.)20Made Visa credit card sales (service charge fee 2%) totaling $4,300.Feb.10
Collected $10,000 on Topeka credit card sales.15Added finance charges of 1% to Topeka credit card balance.Journalize the transactions for Topeka StoresQuestion E9-12Singletary Company had the following select transactions.2008Apr.1,2008Accepted Wilson Companys 1-year, 12% note in settlement of a $20,000 accountreceivable.July1,2008Loaned $25,000 cash to Richard Dent on a 9-month, 10% note.Dec.31,2008Accrued interest on all notes receivable.Apr.1,2009Received principal plus interest on the Wilson note.Apr.
1,2009Richard Dent dishonored its note; Singletary expects it will eventually collect.InstructionsPrepare journal entries to record the transactions. Singletary prepares adjustingentries once a year on December 31.Question P9-5AAt December 31, 2008, the trial balance of Worcester Company contained thefollowing amounts before adjustment.DebitsCreditsAccounts receivable$385,000Allowance for doubtful accounts$2,000Sales950,000Question P9-6AMendosa Company closes its books monthly. On September 30, selected ledgeraccount balances are:Notes receivable$33,000Interest receivable$170Notes Receivable include the following.Date
MakerFaceTermInterestAug. 16Chang Inc.$8,00060 days8%Aug. 25Hughey Co. 9,00060 days10%Sept. 30SkinnerCorp.16,0006 months9%Interest is computed using a 360-day year. During October, the followingtransactions were completed.Oct.7Made sales of $6,900 on Mendosa credit cards.12
Made sales of $900 on MasterCard credit cards. The credit card service charge is3%.15Added $460 to Mendosa customer balance for finance charges on unpaidbalances.15Received payment in full from Chang Inc. on the amount due.24Received notice that the Hughey note has been dishonored. (Assume thatHughey is expected to pay in the future.)