1. An aging schedule shows a required balance in Allowance for Doubtful Accounts of $9,500. If there is a credit balance in the allowance account of $3,500 prior to adjustment, the adjustment amount is $6,000.

True

False

2. The maturity value of a $5,000 note is $5,250. If $100 of the interest has been accrued prior to maturity, the entry at maturity should include a credit to Interest Income for $150.

True

False

3. Allowance for Doubtful Accounts is an expense account, and its normal balance is debit.

True

False

4. The principal amount of a 12%, 3-year, note receivable is $300,000 and is dated January 1, 2017. The interest income to be recognized on December 31, 2017 is $12,000.

True

False

5. When a non-current asset is disposed of before full depreciation, a loss occurs.

True

False

6. Cost of goods sold is the difference between cost of goods available for sale and ending inventory.

True

False