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<\/p>\n
CREDIT
$2,200,000<\/p>\n
$432,000
2,000<\/p>\n
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<\/p>\n
Debit<\/p>\n
Credit<\/p>\n
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<\/p>\n
Debit<\/p>\n
Credit<\/p>\n
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<\/p>\n
CREDIT
$2,200,000<\/p>\n
$432,000
3,500<\/p>\n
Using the above information, answer each of the following independent situations.<\/p>\n
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<\/p>\n
Debit<\/p>\n
Credit<\/p>\n
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<\/p>\n
Debit<\/p>\n
Credit<\/p>\n
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
___________<\/p>\n
___________<\/p>\n
January 15, 2014, 1-year, 16%, $8,000 Note Receivable<\/p>\n
Maturity Date
___________<\/p>\n
___________<\/p>\n
___________<\/p>\n
___________<\/p>\n
April 1, 2014, 8-month, 14%, $6,000 Note Receivable
May 19, 2014, 48-day, 12%, $5,000 Note Receivable<\/p>\n","protected":false},"excerpt":{"rendered":"
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 Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-77590","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/77590","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=77590"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/77590\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=77590"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=77590"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=77590"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}