Chapter 7, Problem 5C

Which principle requires expenses to be recorded in the same period as the revenues they help generate? A) Cost PrincipleB) Matching PrincipleC) Revenue Recognition PrincipleD) Full Disclosure Principle

Northfield Appliances reported annual sales revenue of $2,750,000. During the year, accounts receivable increased from a $78,000 beginning balance to a $93,000 ending balance. Accounts payable increased from a $62,000 beginning balance to a $89,000 ending balance. How much is cash received from customers for the year? A. $3,130,000 B. $3,135,000 C. $2,735,000 D. $3,100,000 Right answer

What is the effective cost of trade credit under the credit terms of 3/10, net 45? Assume 365 days in a year for your calculations. Round your answers to two decimal places. Do not round intermediate calculations.