2. Wh at amount should be recorded as the machine p Is to be financed by making 8 annual payments of $9,000 each applicable interest rate is 8%. a. $63,000 b. $56,222 e cost of a machine purchased December 31, 2014, which beginning December 31, 2015? The c. $95,730 d. $51,719 e. $72,000 hapter 7 -20 questions 3. What is a compensating balance? a. The up-front charge assessed by the factor of receivables D. A cash account, such as a bond sinking fund, a dividend funds, or a payroll account, which is set aside for specific purposes and restricted from general use The balance of the unrealized holding gain associated with adoption of the fair value option. c. d. A minimum deposit required to be maint e ained in connection with a borrowing arrangement. The amount retained by the factor of receivables for possible losses due to sales returns and allowances and sales discounts. If a company fails to adequately reserve for uncollectible receivables, a. Assets will be understated. b. Assets and net income will both be overstated. c. Liabilities will be overstated. d. Liabilities will be overstated and equity will be understated. e. Assets will be overstated and net income will be understated. 4. What is "recourse" as it relates to selling receivables? a. The obligation of the seller of the receivables to pay the purchaser in case the debtor fails b. The obligation of the purchaser of the receivables to pay the seller in case the debtor fai 15. pay pay The obligation of the seller of the receivables to pay the purchaser in case the debtor re the product related to the sale. The obligation of the purchaser of the receivables to pay the seller if all of the receiva collected e. None of the above is correct