1. Bank overdrafts, if material, should be reported as a deduction from the current asset section. reported as a deduction from cash. netted against cash and a net cash amount reported. reported as a current liability. a. b. c. d. The accounting for cash discounts and trade discounts are 2. the same always recorded net. not the same. tied to the timing of cash collections on the account. a. b. c. d. 3. What is the normal journal entry when writing-off an account as uncollectible under the allowance method? a. Debit Allowance for Doubtful Accounts, credit Accounts Receivable. b. Debit Allowance for Doubtful Accounts, credit Bad Debt Expense. c. Debit Bad Debt Expense, credit Allowance for Doubtful Accounts. d. Debit Accounts Receivable, credit Allowance for Doubtful Accounts 4. Which of the following is not true? The imprest petty cash system in effect adheres to the rule of disbursement by check. Entries are made to the Petty Cash account only to increase or decrease the size of the fund or to adjust the balance if not replenished at year-end. The Petty Cash account is debited when the fund is replenished. All of these are not true. a. b. c. d. 5. A Cash Over and Short account is not generally accepted. is debited when the petty cash fund proves out over. is debited when the petty cash fund proves out short. is a contra account to Cash. a. b. c. d. Kennison Company has cash in bank of $15,000, restricted cash in a separate account of $3,000, and a bank overdraft in an account at another bank of $1,000. Kennison should report cash of 6. a. $14,000. b. $17,000. c. $15,000. d. $18,000