12.Which of the following statements correctly describes the effect of recording the collection of a $15,000 account receivable for which a 4% sales discount was recorded at the time of collection?

Multiple Choice

• Accounts receivable will decrease $14,400.

• Current assets will remain the same.

• Gross profit will decrease $600.

• Net sales will increase $14,400.

16.

On November 1, 2019, Davis Company issued $30,000, ten-year, 8% bonds for $28,980. The bonds were dated November 1, 2019, and interest is payable each November 1 and May 1. Davis uses the straight-line method of amortization.

How much is the semi-annual interest expense when the straight-line method of amortization is utilized?

Multiple Choice

• $2,298.

• $1,251.

• $2,502.

• $2,349.