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8) Suppose that three months after filing for bankruptcy, Exquisite Flooring's customer paid its outstanding account balance. Which of the following journal entries would be made to record this transaction? A) Debit Allowance for Doubtful Accounts and credit Bad Debt Expense for $2,800 and then debit Cash and credit Accounts Receivable for $2,800 B) Debit Cash and credit Bad Debt Expense for $2,800 C) Debit Accounts Receivable and credit Allowance for Doubtful Accounts for $2,800 and then debit Cash and credit Accounts Receivable for $2,800 D) Debit Accounts Receivable and credit Bad Debt Expense for $2,800 and then debit Cash and credit Allowance for Doubtful Accounts for $2,800 E) Debit Accounts Receivable and credit Cash for $2,800 9) What is the maturity value of a $6,600, 9-month, 12% note? A) $7,194 B) S13,728 C) $7,392 D) $6,600 Use the following information to answer questions 10 and 11. On September 1, 2019, Jackson Radiology signed a $30,000 10-month note receivable with interest at 8%. 10) The journal entry to accrue interest on December 31, 2019 will include a A) debit to Interest Receivable for $960. B) credit to Interest Revenue for $800. C) debit to Interest Revenue for $800. D) debit to Cash for $800. E) credit to Interest Revenue for $960. 11) The journal entries to record the collection of the interest and note principal on July 1, 2020 will include e A) debit to Cash for $1,200. B) debit to Notes Receivable for $30,000. C) credit to Interest Revenue for $1,200. D) credit to Interest Revenue for $2,000. E) debit to Interest Receivable for $800. 12) Which of the following items would not be considered a long-lived asset? A) Equipment B) Land C) Inventory D) Buildings 3

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