1. Which of the following is a benefit of selling on credit?

Select one:

a. Expenses are reduced by making sales to a wide range of customers.

b. Revenues are increased by making sales to a wider range of customers.

c. Some customers do not pay, creating an expense.

d. Cash is received sooner.

2. Allowance for doubtful accounts has a debit balance of $980 at the end of the current year (prior to adjustment). An analysis of the accounts in the customers ledger indicates uncollectible accounts of $16,000. The adjusting entry would require a credit to:

Select one:

a. bad-debt expense for $16,980.

b. accounts receivable accounts for $15,020.

c. allowance for doubtful accounts for $15,020.

d. allowance for doubtful accounts for $16,980.

3. Both credit cards and debit cards bear a risk for the card holder, the issuer, and the business accepting the card.

Select one:

True

False

4. The practice of selling a note receivable before maturity is called dishonouring the note.

Select one:

True

False