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- 1. Multiple Choice
When a sale is made with the credit terms of 2/10, net 30, the "10" refers to what period?
discount
trade
special
tax
- 2. Multiple Choice
On June 1, $800 of goods are sold with credit terms of 1/10, n/30. How much should the seller expect to receive if the buyer pays on June 8?
720
784
792
800
- 3. Multiple Choice
On June 1, $800 of goods are sold with credit terms of 1/10, n/30. On June 3 the customer returned $100 of the goods. How much should the seller expect to receive if the buyer pays on June 8.
692
693
700
792
- 4. Multiple Choice
When the terms of a sale are FOB ____________ ownership of goods will transfer to the customer at the customer's dock.
shipping point
destination
mail point
ASAP
- 5. Multiple Choice
The seller is responsible for the costs of shipping its goods to the buyer when the terms of the sale are FOB
destination
shipping point
- 6. Multiple Choice
When the Allowance for Doubtful Accounts appears on a company's financial statements, its balance will be a __________ balance.
debit
credit
- 7. Multiple Choice
On which financial statement would you expect to find Allowance for Doubtful Accounts?
balance sheet
income statement
- 8. Multiple Choice
Which method of reporting losses on accounts receivable is to be used for financial reporting?
allowance
direct write-off
- 9. Multiple Choice
After several years of operations, a company's Bad Debts Expense for a given year is likely to be the same as its balance in Allowance for Doubtful Accounts.
True
False
- 10. Multiple Choice
A company estimates that $20,000 of its $500,000 of account receivable will be uncollectible. Its Allowance for Doubtful Accounts presently has a credit balance of $8,000. The adjusting entry will include a _____________ to the Allowance for Doubtful Accounts.
debit of $12,000
credit of $12,000
debit of $28,000
credit of$28,000
- 11. Multiple Choice
A company estimates that $20,000 of its $500,000 of accounts receivable will be uncollectible. Its Allowance for Doubtful Accounts presently has a debit balance of $3,000. The adjusting entry will include a ____________ to Allowance for Doubtful Accounts.
debit of $3000
credit of $3000
debit of $23,000
credit of $23,000
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