1. ACC 557 Chapter 9
(E9-3, E9-6, E9-9, E9-12, P9-5A, P9-6A)
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Question Chapter 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.
Question E9-6
On December 31, 2008, Jarnigan Co. estimated that 2% of its net sales of
$400,000 will become uncollectible. The company recorded this amount as an
addition to Allowance for Doubtful Accounts. On May 11, 2009, Jarnigan Co.
determined that Terry Frye's account was uncollectible and wrote off $1,100. On
June 12, 2009, Frye's paid the amount previously written off.
Instructions
Prepare the journal entries on December 31, 2008, May 11, 2009, and June 12,
2009.
Question 9-9
Topeka Stores accepts both its own and national credit cards. During the year the
following selected summary transactions occurred.
Jan.
15
Made Topeka credit card sales totaling $18,000. (There were no balances prior to
January 15.)
20
Made Visa credit card sales (service charge fee 2%) totaling $4,300.
Feb.
10

2. Collected $10,000 on Topeka credit card sales.
15
Added finance charges of 1% to Topeka credit card balance.
Journalize the transactions for Topeka Stores
Question E9-12
Singletary Company had the following select transactions.
2008
Apr.
1,
2008
Accepted Wilson Company's 1-year, 12% note in settlement of a $20,000 account
receivable.
July
1,
2008
Loaned $25,000 cash to Richard Dent on a 9-month, 10% note.
Dec.
31,
2008
Accrued interest on all notes receivable.
Apr.
1,
2009
Received principal plus interest on the Wilson note.
Apr.

3. 1,
2009
Richard Dent dishonored its note; Singletary expects it will eventually collect.
Instructions
Prepare journal entries to record the transactions. Singletary prepares adjusting
entries once a year on December 31.
Question P9-5A
At December 31, 2008, the trial balance of Worcester Company contained the
following amounts before adjustment.
Debits
Credits
Accounts receivable
$385,000
Allowance for doubtful accounts
$2,000
Sales
950,000
Question P9-6A
Mendosa Company closes its books monthly. On September 30, selected ledger
account balances are:
Notes receivable
$33,000
Interest receivable
$170
Notes Receivable include the following.
Date

4. Maker
Face
Term
Interest
Aug. 16
Chang Inc.
$8,000
60 days
8%
Aug. 25
Hughey Co.
9,000
60 days
10%
Sept. 30
SkinnerCorp.
16,000
6 months
9%
Interest is computed using a 360-day year. During October, the following
transactions were completed.
Oct.
7
Made sales of $6,900 on Mendosa credit cards.
12

5. Made sales of $900 on MasterCard credit cards. The credit card service charge is
3%.
15
Added $460 to Mendosa customer balance for finance charges on unpaid
balances.
15
Received payment in full from Chang Inc. on the amount due.
24
Received notice that the Hughey note has been dishonored. (Assume that
Hughey is expected to pay in the future.)