On September 1, 2022, Benjamin Co. loaned $5,000 cash to Button Inc. and received a two-year, 8% note. Cash interest is due each August 31, and the principal is due at the end of the second year. The stated rate and market rate are equal. Benjamin Co. has a December 31 year-end.

Assuming the proper amount of interest was accrued on December 31, 2022, what account (in Benjamin's books) shows a decrease in its balance on August 31, 2023?

	Interest Revenue
		Interest Receivable
		Interest Expense
		Note Receivable

Which of the following is true regarding sales returns and sales allowances?

		Sales returns are variable consideration; sales allowances are fixed consideration.
		Sales returns represent a price reduction made to encourage customers to keep merchandise; sales allowances are granted for merchandise taken back.
		Two entries are necessary to record estimated sales returns; one entry is required to record estimated sales allowances.
		Companies must estimate sales allowances; sales returns do not have to be estimated.