QUESTION 7 On January 1, 2021, Entity J issued $2,000,000 of 4% bonds with a five-year term. Interest is payable annually on January 1. The market interest rate was 6%. The issue price was $1,831,509. Entity J uses the effective interest method for amortization of bond discount or premium. What is the new carrying value of the bonds after the first interest accrual on December 31? $1,831,509 $2,000,000 $3,000,000 $1,861,400 QUESTION 8 The reason(s) why the direct write-off method for uncollectible accounts is not acceptable for financial reporting is that: 1. The bad debt expense is recorded in a different period than when sales revenue was recorded. II. The accounts receivable balance in the balance sheet does not reflect the amount expected to be received (net realizable (cash) value). I only Oll only Both I and 11 Neither I nor 11 QUESTION 9 Entity I incurred various costs regarding its delivery truck which it purchased two years ago. For the cost that follows, indicate the proper treatment of the cost for financial accounting purposes: A lift ($4,500) was added to the rear of the truck so as to make food deliveries faster. Capitalized Expensed Ignored