1. Which of the following is not a reason for the Jones Hardware Store to accept credit cards from customers? A. Jones can receive its money faster than if it directly extended credit to the customer by an account receivable. B. The credit card company offers a discount to Jones so that Jones will have more money available for operations. C. Jones will not have to be concerned with nonsufficient funds checks from customers. D. Jones will not have to have extra office workers to make phone calls to customers requesting collections on accounts.

2.

3. By treating sales returns and allowances, sales discounts, and credit card discounts as contra- revenues, we have the following impact

___A. Gross margin is reduced by sales returns and allowances, sales discounts and credit card discounts

___B. Gross margin is increased by sales returns and allowances, sales discounts and credit card discounts

___C. Gross margin is unchanged by sales returns and allowances, sales discounts and credit card discounts

___D. Net income is increased by sales returns and allowances, sales discounts and credit card discounts