5) A company made retail sales of $10,000 to its customers. The sales tax rate is 7.0%. All sales are cash sales. What is needed in the journal entry to record these sales? Credit to sales revenue for $10,700 Debit to sales revenue for $10,000 Credit to sales revenue for $10,000 Debit to sales revenue for $10,700 (6) A company has been sued by a group of shareholders who claim they were deceived by the company's financial reporting practices. The likelihood that the company will lose this lawsuit is remote. How should the company report this lawsuit in its financial statements? No liability in the balance sheet, some disclosure in the financial statement notes A liability in the balance sheet, some disclosure in the financial statement notes An expense in the balance sheet, some disclosure in the financial statement notes No liability in the balance sheet, no disclosure in the financial statement notes A company has signed a $10,000, three-year note payable with a 10% annual interest rate. The 10% interest rate is the current market interest rate. On the date the note payable is signed, which amount should the company report for this note payable in its balance sheet? $7,000 $10,000 $11,000 $13,000