On November 1, 2017, Machine Gun Kelly Company loaned Baby Face Nelson Company $20,000 and received a 6% interest bearing note with both interest and principal due in one y How much interest receivable on this note will Machine Gun Kelly Company report on its December 31, 2017 balance sheet? a. $1,200 b. $1,000 c. $600 d. $200 ear. On November 1, 2017, Machine Gun Kelly Company loaned Baby Face Nelson Company $20,000 and received a 6% interest bearing note with both interest and principal due in one year. Assuming Machine Gun's year ends December 31", how much interest revenue will Machine Gun Kelly Company report on its year end December 31, 2018 income statement relative to this note? a. $1,200 b. $1,000 c. $600 d. $200 When preparing a bank reconciliation, which of the following would NOT require an adjusting entry in our accounting records? a. bank service charges; b. deposits in transit; c. NSF checks; d. a check written for $520, but recorded in the company records for $250. The Allowance for Doubtful Accounts is debited when: a. a customer's account becomes past due; b. a customer's account becomes bad and is written off, c. a sale is made; d. management estimates the amount of uncollectible accounts at year end. Interest revenue is reported on the income statement as: a. part of operating revenue; b. part of "other" revenues and expenses; c. part of gross profit; d. interest revenue is not reported on the income statement. Cash equivalents are reported on the financial statements: a. as an increase to operating revenues on the income statement; b. as a part of property, plant and equipment on the balance sheet; c. as an addition to accounts receivable in the current asset section of the balance sheet; d. combined with cash in the current asset section of the balance sheet. Bad debt expense is reported on the income statement as: a. a reduction of sales b. part of "other" revenues and expenses; c. part of cost of goods sold; d. part of operating expenses