6 The account Allowance for Doubtful Accounts is classified asa(n) A) liability B) contra account of Bad Debt Expense C) expense D) contra account to Accounts Receivable 7 The interest on a $4,000, 6 , 60 day note receivable is A) $240 B) $40 C) $80 D) $120 8 10 pnts Assuming that the allowance met...

6 Dcontra account to Accounts Receivable The Allowance for Doubtful Accounts is a contra account to ...

6. The account Allowance for Doubtful Accounts is classified asa(n) A) liability. B) contra account of Bad

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6.	The account Allowance for Doubtful Accounts is classified asa(n)
	A)	liability.
	B)	contra account of Bad Debt Expense.
	C)	expense.
	D)	contra account to Accounts Receivable.

7.	The interest on a $4,000, 6%, 60-day note receivable is
	A)	$240.
	B)	$40.
	C)	$80.
	D)	$120.

10 pnts

Assuming that the allowance method is being used, preparegeneral journal entries without explanations, record the followingtransactions.

January 1	Sold merchandise to Jane Marks for $500 on account.
February 1	Received $200 from Marks.
July 1	Wrote off Marks' account as uncollectible.
September 1	Unexpectedly received payment in full from Marks