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Accounting Principles I Chapter 9 Exercises

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Question;Accounts Receivable ActivityComplete the following activity and save this file on your hard drive. Then submit your file toyour instructor on Canvas.Name:__________________________PART IAt the end of the year, the unadjusted trial balance of Sista Company included the followingaccounts:DEBITCredit SalesAccounts ReceivableAllowance for Doubtful AccountsCREDIT$2,200,000$432,0002,000Using 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 debtexpense, and bad debts are expected to be 1/2% of Sales, the general journal adjusting entry torecord the Bad Debt Expense for the year will be:Account TitleDebitCreditB. If Sista uses the % of Accounts Receivable Method (the Balance Sheet Approach) to estimatebad debt expense, and aging the accounts receivable indicates the estimated uncollectible portion tobe $8,200, the general journal adjusting entry to record the Bad Debt Expense for the year will be:Account TitleDebitCreditPART IIAt the end of the year, the unadjusted trial balance of Sista Company included the followingaccounts:DEBITCredit SalesAccounts ReceivableAllowance for Doubtful AccountsCREDIT$2,200,000$432,0003,500Using 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 debtexpense, and bad debts are expected to be 1/2% of Sales, the general journal adjusting entry torecord the Bad Debt Expense for the year will be:Account TitleDebitCreditB. If Sista uses the % of Accounts Receivable Method (the Balance Sheet Approach) to estimatebad debt expense, and aging the accounts receivable indicates the estimated uncollectible portion tobe $8,200, the general journal adjusting entry to record the Bad Debt Expense for the year will be:Account TitleDebitCreditFor the notes listed below, compute the Maturity Date and the Maturity Value. (Remember that the maturityvalue is the principal of the note plus the interest.)Maturity Value______________________January 15, 2014, 1-year, 16%, $8,000 Note ReceivableMaturity Date____________________________________________April 1, 2014, 8-month, 14%, $6,000 Note ReceivableMay 19, 2014, 48-day, 12%, $5,000 Note Receivable

 

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