60.1K

Verified Solution

Link Copied!

Answer Questions 18-19 using the information below Uniform Supply accepted a $4,800, 90-day, 10% note from Tracy Janitorial on October 17 October 6 7 89 10 12 3 45 6 7 8 98 9 10 12 13 14 13 14 15 16 17 18 19 10 12 13 14 15 16 S 16 17 18 19 20 21 20 2 22 23 24 25 2617 18 19 20 2 22 2322 23 24 25 26 27 28 27 28 29 30 31 4 25 26 27 28 29 301129 30 31 18. What entry should Uniform Supply make on December 31, to record the accrued interest on the note? A) Debit Cash $20; credit Notes Receivable $20 B) Debit Cash $100; credit Notes Receivable $100 C) Debit Interest Receivable $20; credit Interest Revenue $20 D) Debit Interest Receivable $100; credit Interest Revenue S100 E) Debit Cash $120; credit Interest Revenue $100; credit Interest Receivable $20 19. What entry should Uniform Supply make on January 1 paid? A) Debit Notes Receivable $4,800; debit Interest Receivable $120; credit Sales $4.920. B) Debit Cash $4,920; credit Notes Receivable $4,920 C) Debit Cash $4,920; credit Interest Revenue $20: credit Interest Receivable $100: credit Notes Receivable $4,800 D) Debit Cash $4,920; credit Interest Revenue S100 credit Interest Receivable $20; credit Notes Receivable $4,800 E) Debit Cash $4,920; credi Interest Revenue S120: credit Notes Receivable $4,800 of the next year when the note is 20. On October 17 of the current year, a company determined that a customer's account receivable was uncollectible and that the account should be written off. Assuming the allowance method is used to account for bad debts, what effect will this write-off have on the company's net income and total assets? A) Decrease in net income; no effect on total assets. B) No effect on net income; no effect on total assets. C) Decrease in net income; decrease in total assets. D) Increase in net income; no effect on total assets E) No effect on net income decrease in total assets

Answer & Explanation Solved by verified expert

See Answer