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independent questions Reyes Company uses the allowance method to account for uncollectible accounts. On April 1, 2021 Reyes Company decided to write off accounts worth
independent questions
Reyes Company uses the allowance method to account for uncollectible accounts. On April 1, 2021 Reyes Company decided to write off accounts worth $8,000. The journal entry to record the transaction on April 1 will include: * Debit Accounts Receivable $8,000. Debit Allowance for Doubtful Account $8,000. O Debit Bad Debt Expense $8,000. Credit Cash $8,000 O None of the above On October 20, 2021 Happy Company purchases equipment on account from Serena Company for $4,000 and pays the due amount on December 1, 2021. On October 20, 2021 the journal entry in the books of Happy Company includes: Credit Accounts Payable $4,000 Credit Cash $4,000 Credit Notes Payable $4,000 Credit Equipment $4,000 None of the above On May 10, 2021 Rene Company factors $40,000 of accounts receivable to General Credit Factors which charges a fee of 5%. The journal entry to recognize the factoring of accounts receivable includes: * Debit Cash $40,000 Debit Accounts Receivable $40,000. Credit Cash $38,000 O Credit Service Charge Expense $2,000. O None of the above. On February 1, 2021 Mix Company sold merchandise on account to Pet Company for $42.000 plus 7% sales tax. The company remits the sales tax to the government on February 28. Remittance of taxes is equal to: $42,940 $44.940 $2,940 $42,000 None of the above Step by Step Solution
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