6.Ronda's Corporation factored (sold) a two month 12% $3,000 note to a collection agency (Bridge's Inc.) for $3,030 one month after issuance. Which of the following statements is true with regards to this transaction?

If the note was factored with recourse, we do not need a note in the financial statements

Ronda's Corporation will record a journal entry to Dr. Note receivable $3,000. Dr. Interest Income $30 and Cr. Cash $3,030

None of the other alternatives are correct

The note receivable of $3,000 has now been pledged as security to Bridge's Inc.

It is currently Ronda's Corporation's obligation to collect the note of $3,000

7.

When a company that uses the allowance method writes off an actual bad debt:

A. total assets decrease.

B. total liabilities increase.

C. total expenses increase and total revenues increase.

D. total assets, revenue, and expenses remain the same.