Amount of interest revenue problem
On April 1, 2013 a company lends a corporate customer $80,000 at 7% interest. The amount of interest revenue that should be recorded for the year ended December 31, 2013 is:
a) $5600,
b) $0,
c) $4200,
d) $1400
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When a company that uses the allowance method writes off an uncollectible account:
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