Practice Exam 1 MAN3025

On December 1, Christy Co. accepted a 60-day, 6%, $1,000 note due January 30. on December 31, the appropriate year-end adjusting entry was made. On January 30, the note was honored and paid in full. The entry to record receipt of payment on January 30 (assuming no reversing entry was made) would include a credit to:

-Notes receivable for $1,000 -Interest receivable for $5 -Interest revenue for $5

On January 1, JC Co. accepted a 60-day, 6% note in the amount of $10,000 from a customer. On March 2, the due date of the note, the customer honors the note and pays in full. The journal entry that JC would make ton record the receipt of payment of this note would include a debit to:

Cash in the amount of $10,100

Lion Company accepted a $15,000, 30-day, 6% note on December 16 from Diaz Co, granting a time extension on his past-due account receivable. The adjusting entry on December 31 for Lion Company would include a credit to:

Interest revenue for $37.50

At period end, Brandon company estimates that $1,200 of its accounts receivable balance is uncollectible. Brandon uses the allowance method to account for bad debts. The entry to record this adjusting entry would include a (debit/credit) to allowance for doubtful accounts

credit