What would be included in the journal entry on april

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Problem 1: MCM Company issued a note receivable to a customer on October 1, 2020. The face value of the note was $20,000 at 5% interest for 7 months. What would be included in the journal entry on April 30, 2021?

Option 1: A credit to Interest Income for $333.33
Option 2: A debit to Interest Income for $333.33
Option 3: A debit to Interest Receivable for $333.33
Option 4: A credit to Interest Receivable for $333.33

Problem 2: How will the Allowance for Uncollectible Accounts account be shown on the financial statements?

Option 1: As a deduction from accounts receivable on the balance sheet
Option 2: As a deduction from accounts receivable on the income statement
Option 3: As a deduction from sales revenue on the balance sheet
Option 4: As a deduction from sales revenue on the income statement

Reference no: EM132933228

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