The Lowery Co. uses the direct write-off method of accounting for uncollectible accounts receivable. Lowery has a customer whose accounts receivable balance has been determined to likely be uncollectible. The entry to write off this account would be which of the following?

debit Bad Debt Expense; credit Allowance for Doubtful Accounts

debit Bad Debt Expense; credit Accounts Receivable

debit Sales Returns and Allowance; credit Accounts Receivable

debit Allowance for Doubtful Accounts; credit Accounts Receivable.

On July 8, Jones Inc. issued an $80,000, 6%, 120-day note payable to Miller Company. Assume that the fiscal year of Jones ends July 31. Using the 360-day year, what is the amount of interest expense recognized by Jones in the current fiscal year?

$700

$307

$1,400

$4,200

Anderson Co. issued a $50,000, 60-day, discounted note to National Bank. The discount rate is 6%. At maturity, assuming a 360-day year, the borrower will pay

$53,000

$50,500

$49,500

$50,000