Use the following information about Ringo Corporation to answer the next four questions. The Accounts Receivable balance for Ringo Corporation is $200,000 at May 31, 2020. Before calculating and recording May 2020 bad debt expense, the Allowance for Doubtful Accounts has a debit balance of $9,800. Net sales for the month are $1,160,000. An aging of accounts receivable results in a $14,000 estimate for the Allowance for Doubtful Accounts as of May 31, 2020. In the past several years, 2% of net sales have proven uncollectible. a. 1. If Ringo uses the analysis of receivables method, Bad Debt Expense on the May 2020 Income Statement will be: $23,800. b. $23,200. $14,000. d. $13,400. c. 2. If Ringo uses the analysis of receivables method, the Allowance for Doubtful Accounts reflected on the May 31, 2020 Balance Sheet will be: a. $23,800. b. $23,200. c. $14,000. d. $13,400. E a. 3. If Ringo uses the percent of sales method, Bad Debt Expense on the May 2020 Income Statement will be: $23,800. b. $23,200. $14,000. d. $13,400. c. 4. If Ringo uses the percent of sales method, the Allowance for Doubtful Accounts reflected on the May 31, 2020 Balance Sheet will be: a. $23,800. b. $23,200. c. $14,000. d. $13,400. a. 5. The matching rule, applied under the allowance method, relates to losses from credit sales by stating that Bad Debt Expense should be recorded: in the period of the sale. b. in the period of the loss. c. for an exact amount. d. in the same period as allowed for tax purposes. 6. Suppose that Microsoft sells $4,000,000 of its Xbox 360 game to a Micro Center. Micro Center signs a promissory note that has the following terms: annual interest rate of 5% and principal plus interest due in 3 months. Assuming that Micro Center repays the entire amount as scheduled after 3 months, what is the Maturity Value of this note receivable? $4,000,000 b. $4,050,000 c. $4,200,000 d. $4,600,000 7. A $10,000, 90-day, 4% note was received on May 4 and that the fiscal year ended on May 31. Interest will be paid by the borrower on the maturity date of the note. The adjusting entry to record the accrued interest revenue as of May 31 would be (amounts rounded to nearest dollar, use 360-day year): Debit Interest Receivable 30; Credit Interest Revenue 30 b. Debit Cash 100; Credit Interest Revenue 100 c. Debit Interest Receivable 120; Credit Interest Revenue 120 d. Debit Interest Revenue 120; Credit Interest Revenue 120 a