Question 4 - After aging the accounts receivable, it is estimated that $700 will not be collected and the allowance account has an existing credit balance of $100. The adjusting entry under the aging approach would be for the amount of

	$100.
	$600.
	$700.
	$800.

Question 7 - When a company pays an interest-bearing note payable on the due date, the journal entry on the books of the company making the payment includes

	debiting Notes Payable and Interest Expense and crediting Cash.
	debiting Cash and crediting Notes Payable and Interest Expense.
	debiting Notes Payable and Cash and crediting Interest Revenue.
	debiting Cash and Interest Expense and crediting Notes Payable.