The total amount of the note and interest due on the maturity date of a $11,400, 150-day 8%, note receivable is: (Use 360 days a year.)

Multiple Choice

$12,312.

$11,020.

$11,780.

$11,400.

$10,488.

Johnson Company has $107,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 5% of outstanding receivables are uncollectible. The current balance (before adjustments) in the allowance for doubtful accounts is an $970 debit. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for:

Multiple Choice

$5,399

$4,380

$5,350

$5,302

$6,320