X company produces and sells product [H] with a list price of $40, and X sells it to Y for list less a 30 percent trade discount. The journal entry in the books of X is.

a.

Dr. Account receivables $40 and Cr. Sales 40

b.

Dr. Account receivables $40 and Cr. Sales 40

c.

Dr. Account receivables $28 and Cr. Sales 28

d.

Dr. Account receivables $28, Dr. Sales discount 12 and Cr. Sales 40

X Corporation sold goods to Y for $75,000 on September 1, 2020, accepting Ys $75,000, 6-month, 6% note. The adjusting entry on 31 December 2020 in the books of X is

a.

Dr. Interest receivables $1500, Dr. Interest Revenue 1500

b.

Dr. Interest receivables $2250, Dr. Interest Revenue 2250

c.

Dr. Interest expense $1500 and Cr. Interest payable 1500

d.

Dr. Interest expense $2250 and Cr. Interest payable 2250