On March 14, Ian Co. accepted a 180-day, 5% note in the amount of $1,000 from Ali Co., a customer. On the due date of the note

On March 14, Ian Co. accepted a 180-day, 5% note in the amount of $1,000 from Ali Co., a customer. On
the due date of the note, Ali dishonors the note and fails to pay. The journal entry that Ian would record
on the due date would include a: (Check all that apply.)

debit to Accounts Receivable -All for $1,025.
$1,000 x (180/360) x .05 = $25 interest
debit to Interest Revenue for $25.
credit to Notes Receivable for $1,000.
credit to Accounts Receivable -Ali for $1,000.
debit to Notes Receivable for $1,025.
credit to Interest Revenue for $25.
1,000 x (1.80/360) x .05= $25 interest 


On February 15, Symth Co. determines that It cannot collect $500 owed by Its customer, A. Winds. Symth
records the loss using the direct write-off method. This entry to record the write-off on February 15 would

Include a: (Check all that apply.)

credit to Bad Debts Expense.
credit to Sales.
debit to Sales.
debit to Accounts Receivable - A. Winds.
debit to Bad Debts Expense.
credit to Accounts Receivable - A. Winds. 


Simon Co. sold $500 of merchandise on credit cards. The net cash receipts are received 10 days later,

less a 2% fee. The entry to record this sales transaction on the date of the sale would Include a debit to:


cash for $490
Sales for $490
cash for $500
Sales for $500
Accounts Receivable for $500
Accounts Receivable for $490