E 9-3 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. 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 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. P 7-2A Ming Company's chart of accounts includes the following selected accounts. 101 Cash 201 Accounts Payable 120 Merchandise Inventory 306 T. Ming, Drawing 130 Prepaid Insurance 505 Cost of Goods Sold 157 Equipment On October 1 the accounts payable ledger of Ming Company showed the following balances: Bovary Company $2,700, Nyman Co. $2,500, Pyron Co. $1,800, and Sims Company $3,700. The October transactions involving the payment of cash were as follows. Oct. 1 Purchased merchandise, check no. 63, $300. 3 Purchased equipment, check no. 64, $800. 5 Paid Bovary Company balance due of $2,700, less 2% discount, check no. 65, $2,646. 10 Purchased merchandise, check no. 66, $2,250. 15 Paid Pyron Co. balance due of $1,800, check no. 67. 16 T. Ming, the owner, pays his personal insurance premium of $400, check no. 68. 19 Paid Nyman Co.in full for invoice no.610,$1,600 less 2% cash discount, check no.69, $1,568. 29 Paid Sims Company in full for invoice no. 264, $2,500, check no. 70. Instructions (a) Journalize the transactions above in a four-column cash payments journal with columns for Other Accounts Dr., Accounts Payable Dr., Merchandise Inventory Cr., and Cash Cr. Foot and cross foot the journal. (b) Insert the beginning balances in the Accounts Payable control and subsidiary accounts, and post the October transactions to these accounts. (c) Prove the agreement of the control account and the subsidiary account balances P 2-3A Jack Shellenkamp owns and manages a computer repair service, which had the following trial balance on December 31, 2009 (the end of its fiscal year). Trial Balance of BYTE REPAIR SERVICE as at December 31, 2009 Cash $ 8,000 Accounts Receivable 15,000 Parts Inventory 13,000 Prepaid Rent 3,000 Shop Equipment 21,000 Accounts Payable $19,000 Jack Shellenkamp, Capital 41,000 $60,000 $60,000 Summarized transactions for January 2010 were as follows: 1. Advertising costs, paid in cash, $1,000. 2. Additional repair parts inventory acquired on account $4,000. 3. Miscellaneous expenses, paid in cash, $2,000. 4. Cash collected from customers in payment of accounts receivable $14,000. 5. Cash paid to creditors for accounts payable due $15,000. 6. Repair parts used during January $4,000. (Hint: Debit this to Repair Parts Expense.) 7. Repair services performed during January: for cash $6,000; on account $9,000. 8. Wages for January, paid in cash, $3,000. 9. Jack's drawings during January were $3,000. Instructions (a) Open T accounts for each of the accounts listed in the trial balance, and enter the opening balances for 2010. (b) Prepare journal entries to record each of the January transactions. (Omit explanations.) (c) Post the journal entries to the accounts in the ledger. (Add accounts as needed.) (d) Prepare a trial balance as of January 31, 2010