7. Delphi Company uses the allowance method to account for uncollectible accounts receivable. At year end, it was estimated that 1% of net credit sales were uncollectible based on past experience. Net sales were $1,000,000 of which 1/2 were on credit. How much is the Bad Debts expense that will be recorded? ______________________.

8. On December 1, 2020, MSM Learning Center received a $120,000, 75-day, 6% note from customer, Tina Lee, as payment on her account. (Round off to nearest two decimal places.)

a. When is the maturity date of the note? ____________________.

b. How much interest will be earned from the note receivable as of December 31, 2020? _______________.

c. How much cash will be received on maturity date? ____________________.