Question 5

1. MCM Company issued a note receivable to a customer on October 1, 2020. The face value of the note was $20,000 at 5% interest for 7 months. What would be included in the journal entry on April 30, 2021?

   		A debit to Interest Receivable for $333.33
   		A debit to Interest Income for $333.33
   		A credit to Interest Income for $333.33
   		A credit to Interest Receivable for $333.33

Question 6

1. The beginning balance in the Allowance for Uncollectible Accounts account is a $3,500 credit. After conducting an aging analysis, management has determined that $4,700 of accounts receivable will be uncollectible. What was the Uncollectible Accounts Expense for the year?

   		$3,500
   		$1,200
   		$4,700
   		$8,200

Question 7

1. Honeycomb Company issued a note receivable to a customer on September 1. The face value of the note was $20,000 at 5% interest for 7 months. What is the accrued interest journal entry for Honeycomb assuming their fiscal year is December 31?

   		Debit: Interest Receivable $333.33; Credit: Interest Income $333.33
   		Debit: Interest Receivable $1,000; Credit: Interest Income $1,000
   		Debit: Interest Income $333.33; Credit: Interest Receivable $333.33
   		Debit: Interest Receivable $583.33; Credit: Interest Income $583.33

Question 8

1. Credit sales during the year were $300,000, the Allowance for Uncollectible Accounts had a beginning of year balance of $2,500 credit, accounts written off during the year were $2,200. It is estimated that 2.1% of all credit sales are eventually uncollectible. What is the Uncollectible Accounts Expense?

   		None of these.
   		The Uncollectible Accounts Expense should be $6,300.
   		The Uncollectible Accounts Expense should be $6,600.
   		The Uncollectible Accounts Expense should be $8,800.
   		The Uncollectible Accounts Expense should be $8,500.