On July 1, 2020, Suzan Corp. sells electronic merchandise on account to Sam Inc. for $45,000, terms 1/10, n/30. On December 1, Suzan Corp. writes-off as uncollectable the balance due from Sam Inc. Direct write-off method to account for uncollectible accounts is used. The journal entry to record December 1 transaction will include: *
Debit Accounts Receivable $45,000.
Credit Sales Revenue $45,000.
Debit Sales Discount $450.
Debit Bad Debt Expense $45,000
None of the above
If $8,000 is the interest expense of an 8 months note with a face value of $100,000; the annual interest rate is: *
20%
12%
8%
5.3%
None of the above
The maturity date for 50 days’ note dated June 7, 2020 is: *
June 31, 2020
July 1, 2020
July 27, 2020
July 28, 2020
None of the above
On January 31, 2021, Felix Company factors $120,000 of its receivables to B-Bank. The bank applies a 4% charge. The journal entry will include: *
Debit Cash $120,000
Credit Accounts Receivable $115,200
Debit Service Charge Expense $4,800
Credit Sales Revenue $120,000
None of the above

Answer rating: 100% (QA)

ANSWER 1 The journal is to be discarded Uncollectible debts cause the companys accounts ... View the full answer