1. On April 1, 2012, Nelson Inc. accepts a $100,000,8% note. The note receivable and interest are receivable on March 31, 2013. On March 2013, Nelson Inc. will record interest revenue of A. $8000 B. $0 C. $6000 D. $2000 2. A sales discount is recorded by the seller as A. A liability B. A contra revenue C. A contra asset D. An expense 3. Th entry to record the estimate for uncollectible accounts includes: A. A debit to Allowance for Uncollectible accounts. B. A debit to Bad Debt Expense C. A credit to Accounts Receivable D. A debit to Sales Revenue 4. Which of the following is true for a company who uses the allowance method of accounting for uncollectible accounts? A. Bad debt expense is recorded when a specific account is known to be uncollectible. B. Bad debt expense is recorded after all of the current year's credit sales are collected C. Bad debt expense is recorded during the year of the credit sale D. Bad debt expense is only recorded if they exceed 10% of credit sales. 5. The allowance method is required under G.A.A.P., because it is consistent with: A. Cash-basis accounting. B. The revenue recognition principle. C. Properly recognizing the net realizable value of assets. D. Good business practice Schmidt company's accounts receivable balance is $100,000, its adjusted balance in Allowance for Uncollectible Accounts is $4000, and its bad debt expense is $3800. The net realizable value of accounts receivable is: A. $96000 B. $96200 C. $104000 D. $100000 7. If a company uses the allowance method of accounting for uncollectible accounts and writes off a specific account, A. The effect on net account receivables depends on the relationship between the allowance account balance and the amount of the write off. B. Net accounts receivable decrease C. Net accounts receivable do not change. D. Net accounts receivable increase