PART I
At the end of the year, the unadjusted trial balance of Sista Company included the following
accounts:
DEBIT
Credit Sales
Accounts Receivable
Allowance for Doubtful Accounts

CREDIT
$2,200,000

$432,000
2,000

Using the above information, answer each of the following independent situations.
A. If Sista uses the % of Sales Method (the Income Statement Approach) to estimate bad debt
expense, and bad debts are expected to be 1/2% of Sales, the general journal adjusting entry to
record the Bad Debt Expense for the year will be:
Account Title

Debit

Credit

B. If Sista uses the % of Accounts Receivable Method (the Balance Sheet Approach) to estimate
bad debt expense, and aging the accounts receivable indicates the estimated uncollectible portion to
be $8,200, the general journal adjusting entry to record the Bad Debt Expense for the year will be:
Account Title

Debit

Credit

PART II
At the end of the year, the unadjusted trial balance of Sista Company included the following
accounts:
DEBIT
Credit Sales
Accounts Receivable
Allowance for Doubtful Accounts

CREDIT
$2,200,000

$432,000
3,500

Using the above information, answer each of the following independent situations.

A. If Sista uses the % of Sales Method (the Income Statement Approach) to estimate bad debt
expense, and bad debts are expected to be 1/2% of Sales, the general journal adjusting entry to
record the Bad Debt Expense for the year will be:
Account Title

Debit

Credit

B. If Sista uses the % of Accounts Receivable Method (the Balance Sheet Approach) to estimate
bad debt expense, and aging the accounts receivable indicates the estimated uncollectible portion to
be $8,200, the general journal adjusting entry to record the Bad Debt Expense for the year will be:
Account Title

Debit

Credit

For the notes listed below, compute the Maturity Date and the Maturity Value. (Remember that the maturity
value is the principal of the note plus the interest.)
Maturity Value
___________

___________

January 15, 2014, 1-year, 16%, $8,000 Note Receivable

Maturity Date
___________

___________

___________

___________

April 1, 2014, 8-month, 14%, $6,000 Note Receivable
May 19, 2014, 48-day, 12%, $5,000 Note Receivable

PART I
At the end of the year, the unadjusted trial balance of Sista Company included the following
accounts:
DEBIT
Credit Sales
Accounts Receivable
Allowance for Doubtful Accounts

CREDIT
$2,200,000

$432,000
2,000

Using the above information, answer each of the following independent situations.
A. If Sista uses the % of Sales Method (the Income Statement Approach) to estimate bad debt
expense, and bad debts are expected to be 1/2% of Sales, the general journal adjusting entry to
record the Bad Debt Expense for the year will be:
Account Title

Debit

Credit

B. If Sista uses the % of Accounts Receivable Method (the Balance Sheet Approach) to estimate
bad debt expense, and aging the accounts receivable indicates the estimated uncollectible portion to
be $8,200, the general journal adjusting entry to record the Bad Debt Expense for the year will be:
Account Title

Debit

Credit

PART II
At the end of the year, the unadjusted trial balance of Sista Company included the following
accounts:
DEBIT
Credit Sales
Accounts Receivable
Allowance for Doubtful Accounts

CREDIT
$2,200,000

$432,000
3,500

Using the above information, answer each of the following independent situations.

A. If Sista uses the % of Sales Method (the Income Statement Approach) to estimate bad debt
expense, and bad debts are expected to be 1/2% of Sales, the general journal adjusting entry to
record the Bad Debt Expense for the year will be:
Account Title

Debit

Credit

B. If Sista uses the % of Accounts Receivable Method (the Balance Sheet Approach) to estimate
bad debt expense, and aging the accounts receivable indicates the estimated uncollectible portion to
be $8,200, the general journal adjusting entry to record the Bad Debt Expense for the year will be:
Account Title

Debit

Credit

For the notes listed below, compute the Maturity Date and the Maturity Value. (Remember that the maturity
value is the principal of the note plus the interest.)
Maturity Value
___________

___________

January 15, 2014, 1-year, 16%, $8,000 Note Receivable

Maturity Date
___________

___________

___________

___________

April 1, 2014, 8-month, 14%, $6,000 Note Receivable
May 19, 2014, 48-day, 12%, $5,000 Note Receivable