A promissory note: Multiple Choice Is a short-term investment for the maker. O Is a written promise to pay a specified amount of money at a certain date. O Is a liability to the payee. O Is another name for an installment receivable. 12 A company borrowed $10,000 by signing a 180-day promissory note at 9%. The total interest due on the maturity date is: (Use 360 days a year.) Multiple Choice 0 $900 $75 O $450 $300 13 Which of the following is not true about the Allowance for Doubtful Accounts? Multiple Choice It is a contra asset account. It is used instead of reducing accounts receivable directly. It is debited when uncollectible accounts are written off. It is a liability account. On November 1, Orpheum Company accepted a $10,000, 90-day, 8% note from a customer to settle his account. What entry should be made on the November 1 to record the acceptance of the note? 14 Multiple Choice Debit Not Receivable $10,000, credit Cash $10,000 0 Debit Note Receivable $10,000 credit Accounts Receivable $10,000 O Debit Note Receivable $10.000 credit Sales $10,000 Debit Note Receivable $0,200credit Accounts Receivable $10,000 credit interest Revenue $200 Debit Sales $10,000 credit Accounts Receivable $10,000 15 Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $104,500, allowance for doubtful accounts of $665 (credit) and sales of $925,000. If uncollectible accounts are estimated to be 4% of accounts receivable, what is the amount of the bad debts expense adjusting entry? Multiple Choice $4,845 $4180 O o $3,515 0 $3.700 $3,850 Help Save & Exit A 90-day note issued on April 10 matures on: Multiple Choice July 9 July 10 July 11 July 12 July 13