1a.) A 90-day, 12% note for $10,000, dated May 1, is received from a customer on account. The maturity value of the note is:

$10,000

$9,550

$10,300

$450

1b.) A 60-day, 10% note for $8,000, dated April 15, is received from a customer on account. The face value of the note is:

$8,600

$8,000

$8,800

$7,200

1c.)

A $6,000, 30-day, 12% note recorded on November 21 is not paid by the maker at maturity. The journal entry to recognize this event is:

debit Cash, $6,060; credit Notes Receivable, $6,060

debit Notes Receivable, $6,060; credit Accounts Receivable, $6,060

debit Accounts Receivable, $6,060; credit Notes Receivable, $6,000; Credit Interest Revenue, $60

debit Accounts Receivable, $6,060; credit Notes Receivable, $6,000; Credit Interest Receivable, $60

1d.) Allowance for Doubtful Accounts has a debit balance of $500 at the end of the year (before adjustment), and uncollectible accounts expense is estimated at 3% of net sales. If net sales are $600,000, the amount of the adjusting entry to record the provision for doubtful accounts is:

$17,500

$ none of the above

$18,500

$18,000

1e.) On September 1, Blazer Company receives a 10% interest bearing note from Ram Company to settle a $12,000 account receivable. The note is due in six months. At December 31, Blazer should record interest revenue of:

$600

$400

$0

$100