A Couple Of Accounting Questions?

At the end of 2013, Malzahn Inc. had a debit balance of $141,120 in its accounts receivable. Additionally, Malzahn had a credit balance in its allowance for doubtful accounts of $4,350 and $9,420 at the beginning and end of the year, respectively. During the year, Malzahn made credit sales of $1,530,000, collected receivables in the amount of $1,445,700, and recorded bad debt expense of $83,750.
Compute the amount of accounts receivable that Malzahn wrote-off during the year and the amount of accounts receivable at the beginning of the year.
Accounts Receivable written off $
Accounts Receivable at 1/1/2013 $
O’Martin & Lowry, Inc. accepted a $150,000, 8%, 90-day note receivable for services rendered to a client. Thirty days later, O’Martin & Lowry discounted the note at a bank at 10%. Assume interest has not been recognized for the first month.
The entry to record the proceeds from the sale of the note would include a
a. debit to Cash for $145,000
b. debit to Notes Receivable for $150,000
c. credit to Interest Receivable for $1,000
d. credit to Interest Revenue for $1,000

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