1. Which of e following is true about the Sales Returns and Allowances accoun 1. It is used to record the sale of merchandise. 2. It is used to record the reduction of inventory. 3. It is a contra account, deducted from sales. 4. It is used to record discounts for prompt payment. 5. None of the above. 2. What is the accounts receivable ledger? Answer 1. A record of credit customers and their balances 2. A record of vendors and their balances 3. Part of the sales journal 4. Part of the general journal 5. Part of the general ledger 3. Using the information contained in the accounts receivable ledger, the accountant can prepare . Answer 1. The general ledger balance 2. The balance sheet 3. The income statement 4. A schedule of accounts receivable 5. None of the above 4. Which of the following is a written statement indicating a seller's willingness to reduce the amount of a buyer's debt? Answer 1. Debit memorandum 2. Credit memorandum 3. Letter of intent 4. Sales Returns and Allowances memorandum 5. None of the above 5. What does the "2" in 2/10,n/30 mean? Answer 1. Pay in 2 days to ensure early payment 2. 2% discount for early payment within 10 days 3. 2% extra payment due if paid between 10 days and 30 days 4. $2 discount if paid within 10 days 5. None of the above