Please help me analyze and answer these questions:

1. An entity uses the installment method to recognize revenue from installment sales. Customers pay the installment notes in 24 equal monthly a.nounts which include 12% interest. What is the carrying amount of the installment notes receivable six months after the sale?

a. 75% of the original sales price.

b. Less than 75% of the original sales price.

c. The present value of the remaining monthly payments discounted at 12%.

d. Less than the present value of the remaining monthly payments discounted at 12%.

2. On July 1 of the current year, an entity received a one-year note receivable bearing interest at the market rate. The face amount of the note receivable and the entire amount of the interest are due in one year. When the note receivable was recorded on July 1, which of the following was debited?

a. Interest receivable

b. Unearned discount on note receivable

c. Interest receivable and unearned discount on note receivable

d. Neither interest receivable nor unearned discount on note receivable

3. An entity received a seven-year zero interest.bearing note on February 1, 2020 in exchange for property sold There was no established exchange price for the property and the note has no ready market. The prevailing rate of interest for a note of this type was 7% on February 1. 2020, 6% on December 31, 2020, 8% on February 1. 2021, and 9% on December 31, 2021. What interest rate should be uaed to calculate the interest revenue from the transaction for the years ended December 31, 2020 and 2021, respectively?

a. 0% and 0%

b. 7% and 7%

c. 7% and 9%

d. 6% and 9%

4. Which of the following is used to account for probable sales discounts, sales returns and sales allowances in a factoring arrangement?

a. Factor holdback

b. Recourse liability

c. Both factor holdback and recourse liability.

d. Neither factor holdback nor recourse liability

5. When an entity factored accounts receivable without recourse with a bank, the trabsaction is best described as:

a. Bank loan collaterized by the accounts receivable.

b. Bank loan to be repaid by the proceeds from the accounts receivable.

c. Sale of the accounts receivable to the bank, with risk of uncollectible accounts retained by the entity.

d. Sale of the accounts receivable to the bank.

6. Which statement is true when accounts receivable are factored without recourse?

a. The transaction may be accounted for either as secured borrowing or sale

b. The accounts receivable are as collateral.

c. The factor assumes the risk of collectiby and absorbs any credit losses in collecting the accounts receivable.

d. The financing cost should be recognized ratably over the collection period.

7. All but one of the following are required before a transfer of accounts receivable can be recorded as a sale.

a. The transferred accounts receivable are beyond the reach of the transferor and the creditors.

b. The transferor has not kept effective control through a reporchase.

c. The transferor maintains t tia nins continuing involvement.

d. The transferee can pledge the accounts receivable.

8. If financial assets are exchanged for cash but the transfer does not meet the criteria for a sale, the transaction should be accounted for as.

a. Secured borrowing

b. Pledge of collateral

c. Both secured borrowing and pledge of collateral

d. Neither secured borrowing nor pledge of collateral