On July 22, Peter sold $23,500 of inventory items on credit with the terms 2/15, net 30. Payment on $15,000 sales was received on August 1 and the remaining payment was received on August 12. Assuming Peter uses the gross method of accounting for sales discounts, which one of the following entries was made on August 1 to record the cash received? a. Cash.. Sales Discount. 6. 14,700 300 Accounts Receivable 15,000 b. Cash.... 15,000 Accounts Receivable. 15,000 Cash.... 14,700 C. Accounts Receivable 14,700 d. Accounts Receivable. 300 Sales Discount Forfeited.. 300 7. Wellington Corp. has outstanding accounts receivable totaling $6.5 million as of December 31 and sales on credit during the year of $24 million. There is also a credit balance of $12,000 in the allowance for doubtful accounts. If the company estimates that 6 % of its outstanding receivables will be uncollectible, what will be the amount of bad debt expense recognized for the year? a. $402,000. b. $390,000. c. $1,440,000. d. 378,000. 8. Sun Inc. factors $6,000,000 of its accounts receivables without recourse for a finance charge of 5%. The finance company retains an amount equal to 10% of the accounts receivable for possible adjustments. Sun estimates the fair value of the recourse liability at $230,000. What would be recorded as a gain (loss) on the transfer of receivables? a. Loss of $300,000. b. Gain of $530,000. c. Loss of $1,130,000. d. Loss of $230,000