Answer these questions about receivables and uncollectibles. For the true-false questions, explain any answers that are false

1. True or false? Credit sales increase receivables. Collections and write-offs decrease receivables.

2. Which receivables figure, the total amount that customers owe the company or the net amount the company expects to collect, is more interesting to investors as they consider buying the company's shares? Give your reason.

3. Show how to determine net accounts receivable.

4. Caisse Desjardins lent \(\$ 100,000\) to Chicoutimi Ltée on a six-month, \(6 \%\) note. Which party has interest receivable? Which party has interest payable? Which party has interest expense, and which has interest revenue? How much interest will these organizations record one month after Chicoutimi Ltée signs the note?

5. When Caisse Desjardins accrues interest on the Chicoutimi Ltée note, show the directional effects on the bank's assets, liabilities, and equity (increase, decrease, or no effect).