$2,800 $4.400 References Multiple Choice Difficulty: 3 Hard Learning Objective: 07-P3 Estimate uncollectibles based on sales and accounts receivable. 15. Award: 4.00 points Jasper makes a $25.000, 90 day, 7% cash loan to Claybom Co. Jasper's entry to record the transaction should be: O Debit Notes Receivable for $25,000; credit Cash $25,000. O Debit Accounts Receivable $25,000; credit Notes Receivable $25,000. O Debit Cash $25,000: credit Notes Receivable for $25,000. Debit Notes Payable $25,000; credit Accounts Payable $25,000 O Debit Notes Receivable $25,000; credit Sales $25,000. References Multiple Choice Difficulty: 2 Medium Learning Objective: 07-C2 Describe a note receivable, the computation of its maturity date, and the recording of its existence. 16. Award: 4.00 points Duerr Company makes a $60,000, 60-day, 12% cash loan to Ryan Co. The note and Interest to be collected at maturity is: (Use 360 days a year.) O $60,000 $1,200 $61,200 $58,800 $67,200 References Multiple Choice Difficulty: 2 Medium Learning Objective: 07-C2 Describe a note receivable, the computation of its maturity date, and the recording of its existence. 17. Award: 4.00 points Lemming makes an $18,750, 120 day, 8% cash loan to Notions Co. on November 1. Lemming's end-of- period adjusting entry on December 31 should be: O Debit Cash for $250;credit Notes Receivable $250. Debit Interest Revenue $500; credit Notes Receivable $500. O Debit Interest Receivable $250; credit Interest Revenue $250. Debit interest Receivable $500: credit Interest Revenue $500. Debit Notes Receivable $500 credit Interest Revenue $500. References Multiple Choice Difficulty: 2 Medium Learning Objective: 07-C2 Describe a note receivable, the computation of its maturity date, and the recording of its existence. 18. Award: 4.00 polnts The total amount of the note and interest due on the maturity date of a $6,000, 60-day 4%, note receivable is: (Use 360 days a year.) $6,000 O O $6,240 $5,760 $6,040 $5,960. References Multiple Choice Difficulty: 3 Hard Learning Objective: 07-C2 Describe a note receivable, the computation of its maturity date, and the recording of its existence. 2. Award: 4.00 points Uniform Supply accepted a $4,800, 90-day, 10% note from Tracy Janitorial on October 17. What entry should Uniform Supply make on January 15 of the next year when the note is paid? (Assume reversing entries are not made.) (Use 360 days a year.) O Debit Notes Receivable $4,800; debit Interest Receivable $120; credit Sales $4.920. O Debit Cash $4,920; credit Notes Receivable $4,920. Debit Cash $4.920, credit Interest Revenue $100; credit Interest Receivable $20; credit Notes Receivable $4.800. Debit Cash $4.920, credit Interest Revenue $20; credit Interest Receivable $100; credit Notes Receivable $4,800. O Debit Cash $4.920, credit Interest Revenue $120; credit Notes Receivable $4,800. References Multiple Choice Difficulty: 3 Hard Learning Objective: 07-P4 Record the honoring and dishonoring of a note and adjustments for Interest. Award: 4.00 points
