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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

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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 $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

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