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14. The journal entry to accrue interest revenue is..- c. Interest Receivable Interest Revenue a. Cash Interest Revenue То ассrue interest To accrue interest d. Interest Revenue b. Interest Revenue Interest Receivable Cash To accrue interest To accrue interest 15. Your company sells a product for another company and receives a com mission of 10% on sales, By the end of your company's fiscal year, your company had sales of $200,000 and received $8,000, which was credited to Revenue. How much additional revenue must be recorded this fiscal year? a. $20,000 d. $0 b. $12,000 c. $8,000 16. When revenue is accrued, what is the effect on assets and income, respectively? a. Both increase. b. Both decrease. c. Assets increase; income decreases. d. Assets decrease; income increases. 17. Which of the following is an accurate description of accrued revenue? a. It is unearned. b. It has been received in cash. c. It is earned and received in cash. d. It has not yet been received in cash. 18. The balance in Allowance For Doubtful Accounts is important to the cal- culation of bad debt when bad debt is calculated... a. as a percentage of credit sales, b. as a percentage of accounts receivable that will not be collected c. under the direct write-off method. d. none of the above.
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