6. Jervis accepts all major bank credit cards, including those issued by Northern Bank (Ne), which assesses a 3% charge on sales for using its card. On June 28 , Jervis had $3,500 in NB Card credit sales. What entry should Jervis make on June 28 to record the deposit? A) Debit Cash $3,500; credit Sales $3,500 B) Debit Accounts Receivable $3,500; credit Sales $3,500 C) Debit Cash $3,605; credit Credit Card Expense $105; credit Sales $3,500 D) Debit Cash $3,395; debit Credit Card Expense $105; credit Sales $3,500 E) Debit Accounts Receivable $3,395; debit Credit Card Expense $105; credit Sales $3,500 7. On October 12 of the current year, a company determined that a customer's account receivable was uncollectible and that the account should be written off. Assuming the direct write-off method is used to account for bad debts, what effect will this write-off have on the company's net income and total assets? A) Decrease in net income; no effect on total assets B) No effect on net income; no effect on total assets C) Decrease in net income; decrease in total assets D) Increase in net income; no effect on total assets E) No effect on net income; decrease in total assets 8. All of the following statements regarding the allowance method are true except: A) allowance method estimates bad debts expense at the end of each accounting period and records it with an adjusting entry. B) The Allowance for Doubtful Accounts is a contra asset account C) The Allowance for Doubtful Accounts is subtracted from Accounts Receivable to report recelvables at realizable value D) The allowance method does not record bad debt expense until a customer's account receivable is determined to be uncollectible E) The write-off an uncollectible account does not impact the income statement 9. Total Interest to be earned on a $7.500,5%,90 day note is: (Use 360 days a year.) A) $93.75 B) $375.00 C) $1,125.00 D) $31.25 E) $125,00 10. The maturity date of a note receivable: A) is the day of the credit sale B) is the day the note was signed C) is the day the note is due to be repaid D) Is the date of the first payment E) Is the last day of the month