Provide Answer to this accounting MCQ Under what circumstances does trade discount affectthe accounting records?a) Appears as reduction in salesb) Shows as contra revenue accountc) Never recorded - only net amount is journalizedd) Recorded as financial expense

Explanation of Trade Discount: A trade discount is a reduction in the listed or catalog price of…

Answered: Under what circumstances does trade…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 23MC: Which of the following accounts would not be reported under revenue on a simple income statement? A....

See similar textbooks

Similar questions

please give correct answer with all accounts explanation .
Using the allowance method, is Bad Debt Expense recognized in the period in which ( a ) sales related to the uncollectible account were made or ( b ) the seller learns that thecustomer is unable to pay?
The entry to write off an account receivable under the allowance method willT ( A. increase total assets O B. increase net income C. reduce net income D. have no effect on net income)
Indicate whether each statement best describes the allowance (A) method or the direct write-off (DW)method. Estimates bad debts expense related to the sales recorded in that period.
Which of the following accounts would not be reported under revenue on a simple income statement? A. interest revenue B. net sales C. rent revenue D. operating expenses
Indicate by a (+), (), or (0) whether each of the following events would most likely cause accounts receivable (AR), sales, and profits to increase, decrease, or be affected in an indeterminate manner:
Which method delays recognition of bad debt until the specific customer accounts receivable is identified? A. income statement method B. balance sheet method C. direct write-off method D. allowance method
Under the allowance method for uncollectible receivables, the entry to record uncollectible-account expense has what effect on the financial statements?a. Decreases assets and has no effect on net incomeb. Increases expenses and increases stockholders’ equityc. Decreases net income and decreases assetsd. Decreases stockholders’ equity and increases liabilities
The direct write-off method requires estimates of: * (a) Uncollectible accounts expense (b) Valuation allowance (c) Both a and b (d) None of the above.
When converting accrual basis to cash basis of accounting, which of the following adjustments should not be made to accrual basis sales to arrive at the cash basis sales? a. Deduct beginning balance of advances from customers. b. Subtract ending accounts receivable c. Add ending accounts receivable d. Add beginning accounts receivable
Which situation indicates loss on the income statement a. Total debits exceed total credits b. Total credits exceed total debits c. None of the choices d. Total debits equal total credits
Under the allowance method, the write-off of an uncollectible account ________. Group of answer choices decreases total assets has no effect on the allowance for uncollectible accounts increases expenses has no effect on net income

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

Century 21 Accounting Multicolumn Journal

Accounting

ISBN:

9781337679503

Author:

Gilbertson

Publisher:

Cengage

Century 21 Accounting General Journal

Accounting

ISBN:

9781337680059

Author:

Gilbertson

Publisher:

Cengage

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

Century 21 Accounting Multicolumn Journal

Accounting

ISBN:

9781337679503

Author:

Gilbertson

Publisher:

Cengage

Century 21 Accounting General Journal

Accounting

ISBN:

9781337680059

Author:

Gilbertson

Publisher:

Cengage

Intermediate Financial Management (MindTap Course…

Finance

ISBN:

9781337395083

Author:

Eugene F. Brigham, Phillip R. Daves

Publisher:

Cengage Learning

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

SEE MORE TEXTBOOKS

Under what circumstances does trade discount affect the accounting records? a) Appears as reduction in sales b) Shows as contra revenue account c) Never recorded - only net amount is journalized d) Recorded as financial expense