On March 1 2016 Mike Dials purchased a suit at Lenny's Fine Apparel Store. The suit cost $800 and Mike used his Lenny's credit card. Lenny's charges 3% per month interest if payment on credit charges is not made within 30 days. On April 30 2016 Mike had not yet made his payment. What entry should Lenny's make on April 30th? a. Uncollectible Account 800 Accounts Receivable 800 \begin{array}{lrr} ext {Uncollectible Account } & 800\ ext { Accounts Receivable } & & 800\\end{array} Uncollectible Account Accounts Receivable 800 800 b. Bad Debt Expense 776 Interest Expense 24 Accounts Receivable 800 \begin{array}{lrr} ext { Bad Debt Expense} & 776\ ext { Interest Expense } & 24\ ext {Accounts Receivable } & & 800\end{array} Bad Debt Expense Interest Expense Accounts Receivable 776 24 800 c. Accounts Receivable 824 Interest Expense 24 Sales Revenue 800 \begin{array}{lrr} ext { Accounts Receivable } & 824\ ext { Interest Expense} & & 24\ ext { Sales Revenue} & & 800\end{array} Accounts Receivable Interest Expense Sales Revenue 824 24 800 d. Accounts Receivable 24 Interest Expense 24 \begin{array}{lrr} ext { Accounts Receivable} & 24\ ext { Interest Expense} & & 24\\end{array} Accounts Receivable Interest Expense 24 24

Question

On March 1 2016 Mike Dials purchased a suit at Lenny's Fine Apparel Store. The suit cost $800 and Mike used his Lenny's credit card. Lenny's charges 3% per month interest if payment on credit charges is not made within 30 days. On April 30 2016 Mike had not yet made his payment. What entry should Lenny's make on April 30th? a. Uncollectible Account  800  Accounts Receivable  800 \begin{array}{lrr}  	ext {Uncollectible Account  }  & 800\ 	ext { Accounts Receivable }  & & 800\\end{array} Uncollectible Account   Accounts Receivable  ​ 800 ​ 800 ​ b.  Bad Debt Expense 776  Interest Expense  24 Accounts Receivable  800 \begin{array}{lrr}  	ext {  Bad Debt Expense}  & 776\ 	ext { Interest Expense }  & 24\ 	ext {Accounts Receivable  }  & & 800\end{array}  Bad Debt Expense  Interest Expense  Accounts Receivable  ​ 776 24 ​ 800 ​ c.  Accounts Receivable  824  Interest Expense 24  Sales Revenue 800 \begin{array}{lrr}  	ext { Accounts Receivable  }  & 824\ 	ext {  Interest Expense}  & & 24\ 	ext {  Sales Revenue}  & & 800\end{array}  Accounts Receivable   Interest Expense  Sales Revenue ​ 824 ​ 24 800 ​ d.  Accounts Receivable 24  Interest Expense 24 \begin{array}{lrr}  	ext {  Accounts Receivable}  & 24\ 	ext {  Interest Expense}  & & 24\\end{array}  Accounts Receivable  Interest Expense ​ 24 ​ 24 ​

anupama patnaik · Accepted Answer

Final Answer : D

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