Service charge expense on credit cards reduces the amount recorded as sales revenue. ○ True O False
Q: A customer of Triple D can also be a supplier to Triple D and then, if the creditor’s amount is more…
A: A creditor is the entity to whom the company owes money whereas a debtor is an entity who owes money…
Q: Expense Recognition Question: Why is that sometimes there is no direct relationship between…
A: Accounting is based on a set of principles and rules and the expense recognition principle is one of…
Q: Accounts receivable minus allowance for bad debts is equal to net realizable value. T/F
A: The account receivables are the assets, which includes the money due from the customers.
Q: An account that is classified as a contra-revenue: O a. may include sales discounts and credit card…
A: Solution: A contra revenue account is reverse of revenue account i.e. contra revenue accounts is…
Q: Liabilities and Revenues O Are decreased by debits and increased by credits Are decreased by both…
A: The different accounts in the business have debit or credit balance. According to the rules of…
Q: What is the difference between a credit card and a debit card? O A credit card is loaned money, plus…
A: Debit card is the facility given by the banks to their customers so that they can withdraw cash from…
Q: 1. Which of the following accounts is used only with the allowance method of accounting for…
A: As posted multiple independent questions we are answering only first question kindly repost the…
Q: Need Help
A: Question: 71Write-Off Method:When a business makes a sale on account, that may not translate to…
Q: True or False: You can dispute an incorrect item on your credit report. True False
A: If there is an error in your credit report one should immediately takes steps to rectify it because…
Q: he aging of accounts receivable method uses __________________to estimate the allowance amount. a.…
A: Answer: Option C is the Correct Answer i.e. Both past and current receivables information.
Q: Quantity discount grand to customers to encourage them to paid early O True O False
A: (1) The given statement is False. Quantity discount : Quantity discount is also known as Trade…
Q: Which of the following is a true statement about a company that uses the allowance method? Multiple…
A: The company makes sales for cash and accounts as well. The company making sales on account faces bad…
Q: 16. Which of the following is a contra account? a. Sales discounts b. Purchase returns and…
A: In accounting, a contra account is a unique kind of account that is used to lower the balance of a…
Q: The return of the defective merchandise from a sale of merchandise on account decreases the amount…
A: Sales Return: Sales return refers to the return of defective, damaged inventories or merchandise by…
Q: Money spent from a debit card is money that is borrowed and must be paid back. O True O False
A: Money spent from debit card is the money owned by the customer and is in customers account only. i,…
Q: Which is correct with regards to the effects of restricting credit standards? * O An increase in…
A: A credit policy lays out the conditions under which consumers who purchase on credit must pay back…
Q: Allows purchases beyond credit limit. This is referred to
A: Credit purchase limit terms are used in credit card cases. If any user of a credit card makes a…
Q: Which of the following is an advantage of using a credit card? O Your spending is limited to the…
A:
Q: How does the percent-of-sales method compute bad debts expense?
A: In percent of sales method, bad debt expenses are computed as a predetermined percentage of credit…
Q: What is a credit card’s grace period? A) it is the amount of time after a purchase and before it…
A: Introduction: The time between the end of the billing cycle and the payment due date is called the…
Q: ing source of finance allows the holders to withdraw more than their balance ? a. Commercial Paper…
A: Financial instruments are instruments that have some monetary value and are created due to the…
Q: What is the term used to describe the amount of accounts receivable that is actually expected to be…
A: A. The present value of accounts receivable is the amount of accounts receivable discounted to its…
Q: Which one of the following statements is NOT true about account receivables? Select one: a. Account…
A: Accounts receivable: if sale is made on cash the supplier immediately collects the cash and no…
Q: what is the average amount of receivables؟ 2-what is the percentage cost of trade credit to…
A: 1) Hence, the average amount of receivables is $70,000.
Q: The cost of not taking the discount a cash discount is the implied rate of interest paid in order to…
A: When a supplier offers a cash discount, it means that if the buyer pays the invoice within a certain…
Q: If the percentage of sales is used in determining the allowance for bad debts, the resulting figure…
A: The answer to the question is given below
Q: GAAP requires companies to method to record bad debts expense. OA. use the allowance OB. use the…
A: Allowance for doubtful accounts is determined as the reduction in the accounts receivable that…
Q: Research and describe the following accounts and explain how to use them with some transaction…
A: Adjustments entries are the journal entries made at the end of the accounting period to account for…
Q: The Allowance for Doubtful Accounts account is a contra asset account to Accounts Receivable. True O…
A: ACCOUNT RECEIVABLE Account Receivable is Also Known as Trade Receivable. Account Receivable is a…
Q: What kind of business would have a short duration of receivables collection?
A: The low collection time is typically more appealing than the long collecting period. The fact that…
Q: If the allowance method of accounting for uncollectible receivables is used, what general ledger…
A: Allowance for doubtful debts is account created to estimate double debts expenses. It is deducted…
Q: In the allowance method why when account receivable is write off, bad debt expense is not debited?
A: The allowance Method is an indirect method of writing off bad debts. It means setting aside a…
Q: Q4 - Which of the following is a method of accounting for Bad Debts? a. Percentage of Sales Method…
A: Bad debts are those kinds of customers that become uncollectible. These are charged in the income…
Q: The left side of any account is the credit side 10 A) True B) False
A: Solution: An account is way of record keeping with two sides. One is left side or debit side and…
Q: allows the bank clients to borrow money against a line of credit with a credit limit. a. Credit card…
A: When borrower can take money out as needed untill the limit is reached and as money is repaid it can…
Q: Credit card discounts are deducted from gross sales to calculate net sales revenue. False True
A: Discount is the amount which is deducted from the price of goods to arrive at the net amount paid by…
Q: ich of the following is a responsible financial decision? Making a down payment on a loan. O…
A: Responsible financial decisions involves taking planned and wise decisions to avoid any financial…
Q: The estimate of a bad debt expense may be based on the historical relationship between actual bad…
A: Loss from uncollectible accounts means where goods has been sold on credit and amount has not been…
Q: Allowance for Bad Debts is what kind of account?
A: There are two ways by which bad debt expense is reported by company which is direct method and…
Q: By restricting credit, and granting short maturities to speed up accounts receivable turnover, sales…
A: Accounts receivable Turnover ratio: This ratio is calculated to determine how often receivable are…
Q: The revenue account is not affected when a credit sale is made. A. True B. False
A: Credit Sale: It implies to the sale of products and services to the customer and the customer does…
Q: QUESTION 10 Match the term on the left to the appropriate classification or description on the…
A: In this question, we are required to match the terms given in the left side with the description…
Q: Under the allowance method, the write-off of an uncollectible account ________. Group of answer…
A: The objective of the question is to understand the impact of writing off an uncollectible account…
Q: O a. None of the above Ob. Decrease in Money Supply O C. Increase in Money Supply d. No Change in…
A: Solution: Credit Creation Multiplier is a multiple which shows that how much multiple times the…
Q: when the company sold goods on account the A/P will be in the debit side O True O False
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
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- In which of the following ways do Fedwire payments differ from ACH payments? 1. Fedwire payments are always credit push. 2. Fedwire is an electronic payment method. 3. Fedwire payments typically cost the payer more to send. Give typing answer with explanation and conclusionA ____ will cause Deferred Revenue to decrease. A. Debit B. CreditMULTIPLE CHOICE What is the effect of the following situations on the cost of accounts receivable financing? (A) A more thorough credit check is undertaken. (B) Receivables are sold without recourse. A. (A) Increase; (B) DecreaseB. (A) Decrease; (B) IncreaseC. (A) Decrease; (B) DecreaseD. (A) Increase; (B) IncreaseE. (A) Increase; (B) No effect
- The Allowance for Doubtful Accounts account is a contra-account that offsets: Multiple Choice Bad Debt Expense. Cash. Net Income. Accounts Receivable.Cash realizable value is calculated as Accounts Receivable plus Allowance for Doubtful Accounts True FalseWhich of the following is correct regarding accrual basis of accounting? a. No bad debts are recognized because trade receivables are not recognized. b. Accrual sales is equal to cash sales plus collection of trade receivables. c. Accrual purchases is equal to cash purchases less purchases on account. d. Doubtful accounts are treated as bad debts.
- Receivables are valued and reported in the statement of financial position at their gross amount less any sales returns and allowances and less any cash discounts. True or FalseAccounting for long-term credit sales transactions utilizing notes receivable Multiple Choice A. ignores interest unless an interest rate is specified in the note. B. makes it difficult to assess the degree to which a company’s overall earnings are due to profitable credit sales versus profitable customer financing. C. achieves a clear separation between income from credit sales and interest earned. D. is controversial because it necessitates use of an assumed interest rate.Credit Policy is not always important in order to manage accounts receivables. * True False