7. Bella Corporation borrowed $90,000 on July 31, 2020. The loan incurs 6% interest and is due in 2021. Which account and what dollar amount should Bella Corporation debit in the adjusting entry for interest on December 31, 2020? a. Interest expense for $2,250 b. Interest payable for $2,250 C. Interest expense for $2,700 d. Interest payable for $2,700 8. Where does Allowance for Doubtful Accounts appear in the financial statements? a. Statement of cash flows b. Income statement C. Balance sheet d. Statement of stockholders' equity 9. Alan Company paid a $50,000 dividend during 2020. On which financial statement does this appear? Balance sheet a. b. Statement of stockholders' equity C. Statement of cash flows d. Income statement 10. The ending balance of retained earnings on the Statement of Stockholders' Equity also appears on which other financial statement? a. Statement of cash flows b. Balance sheet C. Income statement 11. If inventory prices are rising, then a. LIFO b. FIFO C. Specific Identification d. Weighted Average will result in the highest net income