Q1 a) Explain the methods that can estimate bad debt expenses in business. (Give numerical examples)

(1 Mark)

b.) Differentiate between Accounts receivable and Notes receivable. (1 Mark)

c) On 1^st of October 2019, XYZ Inc. has sold an equipment for $ 25,000 to ABC Ltd.by issuing an 8% note receivable for 90 days. Calculate the interest on the note and on what would be the maturity date. Pass Journal entry in the books of the company to record these transactions. (2 Marks)