Question 4 and 5

4. On July 1, 2019, Jackson Company received a $20,000 promissory note from Jordan Company. The annual interest rate is 5%. Principal and interest are paid in cash at the maturity date of June 30, 2020. If Jackson's fiscal year ends September 30, 2019, an adjusting entry is needed to: A. Credit Interest Receivable for $1,000 B. Debit Interest Revenue for $1,000 C. Debit to Interest Receivable for $250 D. Debit to Interest Revenue for $250 E. Credit to Notes Receivable for $250 5. Mark each of the following statements as either true or false and select the correct answer An entry to write-off an uncollectible account does not change the net realizable value of accounts receivable. When recording an adjusting entry for bad debt, a debit to Bad Debt Expense and a credit to the Allowance for Doubtful Accounts will affect the balance sheet, but not the Income Statement Sales Returns and Allowances should not be included as a selling expense. A. True, True, True B. True, False, True c. True, False, False D. False, False, False E. False, True, True