Heading 2 Heading 3Heading 4 Normal Strong Emphasis LO1. How are current liabilities of know amounts accounted for? What are three main characteristics of liabilities? a) ABC Company made a cash sale of $1,000 and the company collected an additional 7% sales tax, the journal entry would be: b) Debit Credit Date Accounts and Explanation of the initial $2,000 c) During the month, ABC Company delivered of the work to earn recorded previously as unearned revenue. The adjusting entry to show some work had been completed and some revenue had been now earned would be: Debit Credit Date Accounts and Explanation During the month, ABC Company purchased merchandise inventory with a 10%, 90-day note payable, for $1,000. The company uses the perpetual inventory system. The entry to record the note and purchase of the inventory is: d) Debit Credit Date Accounts and Explanation Based on the information in letter d above, assume ABC Company pays the note when due 90 days later. The journal entry is (take interest expense to the nearest dollar): c) Date Credit Debit