Question 1 (2 points) Night Corp. receives a $4,000, 3-month, 8% note from Day Corp. in settlement of a past due account receivable. What entry will Night Corp, make upon receiving the note? Notes Receivable.... Accounts Receivable. Notes Receivable........... Accounts Receivable.. Interest Revenue...... Notes Receivable........ Accounts Receivable. Notes Receivable.. Interest Receivable.. Accounts Receivable. Interest Revenue. 4,080 4,080 4,080 4,000 80 4,000 4,000 4,000 80 4,000 80 Question 2 (2 points) Gray Inc. lends White Ltd. $60,000 on April 1, accepting a 6-month, 4.5% interest note. Interest is due the first of each month, commencing May 1. Gray Inc. has an April 30 year-end.. What adjusting entry should be made before the financial statements can be prepared? Cash Interest Revenue.. Note Receivable... Cash.. Interest Receivable. Interest Revenue. 225 225 60,000 60,000 1,350 1350 Interest Receivable. Interest Revenue. 225 225 Question 3 (2 points) The financial statements of Bolero Manufacturing Inc. report net credit sales of $900,000 and accounts receivable of $80,000 and $40,000 at the beginning of the year and end of the year, respectively. What is the receivables turnover ratio for Bolero? 15.0 times 7.5 times 22.5 times 11.25 times Question 4 (2 points) The financial statements of Bolero Manufacturing Inc. report net credit sales of $900,000 and accounts receivable of $80,000 and $40,000 at the beginning of the year and end of the year, respectively. What is the average collection period for accounts receivable in days (rounded)? 49 days 16 days 24 days 32 days