A. Stine Co. previously wrote off a $200 bad debt from Thorn Co. using the direct write-off method. On October 1, Stine unexpectedly receives a check

In July, Lane Co. sells merchandise to Avery Co. on account. In August, Avery pays the balance in full. The
entry that Lane will make to record the receipt of cash will include a credit to the account.

Accounts Payable
Sales
Accounts Receivable
Cash
Unearned Sales


To compute interest due on a maturity date, you should multiply which of the following factors? (Check all
that apply.)

Time expressed in fraction of year
Maturity value
Principal
Interest Rate


On June 30, Nance Company receives a $5,000, 90-day, 4% note from a customer as payment on her

account How much interest will be due on the note's maturity date?

$225
$50
$200
$25


A 90-day note is signed on October 21. The due date of the note is:

January 21
January 20
January 18
January 19 


A. Stine Co. previously wrote off a $200 bad debt from Thorn Co. using the direct write-off method. On
October 1, Stine unexpectedly receives a check in the amount of $200 from Thom Co. The entry to record

this receipt of $200 will include a: (Check all that apply.)

credit to cash.
debit to cash.
credit to Bad Debts Expense
debit to Bad Debts Expense