On January 1, Franz Co. accepted a 3o-day, 6% note in the amount of $5,000 from Bria Co., a customer. On January 31, the due date of the note

JD Co. had $1,000 of credit cards sales. The net cash receipts were deposited Immediately Into
Whitlock's bank account less a 3% fee. The entry to record this sales transaction would include the
following debit entries. (Check all that apply.)

Sales for $970
Cash for $970
Accounts Receivable for $970
Accounts Receivable for $1,000
Credit card Expense for $30
cash for $1,000


The _____ method of accounting for bad debts records the loss from an uncollectible account
receivable when it is determined to be uncollectible. No attempt is made to predict bad debts expense.

percentage of sales
direct write-off
allowance
percentage of receivables


On January 1, Franz Co. accepted a 3o-day, 6% note in the amount of $5,000 from Bria Co., a customer.
On January 31, the due date of the note, Bria honors the note and pays In full. The journal entry that
Franz would make to record payment of this note would include a: (Check all that apply.)

debit to Cash for $5,025.
credit to Note Receivable for $5,025.
credit to Note Receivable for $5,000.
debit to Interest Revenue for $25.
credit to Interest Revenue for $25.