1. BarbCo sells golf balls to Pop's Shop under the terms 3/10 n/40. These terms imply which of the following?

BarbCo expects the balance to be paid within 10 days or there is a 40% penalty

BarbCo will accept 97% of the bill as payment in full if received within 10 days.

Pop receives a 10% discount if he pays within 10 days

BarbCo will give Pop 3 days to pay 10% of his balance and the rest is due within 40 days.

Pop receives a 3% discount if he pays after 10 days.

2. On 2001 balance sheet of WilliamCo, it reported "Accounts Receivable, net of allowance of $4100, $75,500." During 20002, WilliamCo estimated bad debt expense at 2% of credit sales, credit sales was $505,000 and collections was $480,000, and $3600 in accounts receivable were written off. What is the ending balance of Accounts Receivable at the end of 2002? Please show calculations for answer.

$101,000

$76,900

$84,600

$88,200

3. Which of the following is not correct?

The journal entry to record collections of accounts receivable that previously have been written off would not change total assets.

When a company factors accounts receivable with recourse, the company will not bear the risk of bad debt associated with the factored accounts receivable.

After factor accounting receivable with recourse and the transaction did not meet the sales treatment criteria by ASC 860, the company's debt to equity ration is higher.

Both notes receivable and accounts receivable can be sold for immediate cash and require estimates of uncollectible accounts.

4. Which of the following pairs of methods of accounts receivable financing are the least similar?

Assignment of accounts receivable and factoring of accounts receivable without recourse

Factoring of accounts receivable with recourse accounted for as a load and assignment of accounts receivable

Factoring of accounts receivable without recorse and factoring of accounts receivable with recourse accounted for as a sale

Both B and C are the least similar