1. Which of the following transactions indicates a purchase allowance? a.) Pat sent back a set of Kinkajou cages because they were not the proper size. b.) Several rope slings arrived with frayed ends. Pat agreed to keep them for a 25% discount. c.) Because they arrived dented, Pat refused an order of food bowls at delivery. d.) The Pet Hotel returned a shipment of dog beds that were the wrong size and received a refund 2.Which of the following events corresponds with a sales return? a.) The Furry Place returned bagged rabbit food to the supplier because it was the wrong flavor. b.) A customer traveling abroad for the next month paid cash for his snake to stay at the The Furry Place while he's gone. c.) Due to an extra shipment, The Furry Place had a special this week on kitty litter. d.) The Furry Place gave a customer $25 back after she returned a defective dog leash. 3. Select the true statement about the allowance method of accounting for bad debts. a.) It focuses on customers with credit and cash accounts. b.) It follows the matching principle. c.) It is the less-preferred method for financial reporting purposes. d.) It directly credits accounts receivable. 4. Susan found that Accounts Receivable had a balance of $500,820 and calculated that 5% of receivables were uncollectible. Based on this information, __________ is the allowance for bad debt. a.) $25,041 b.) $52,586 c.) $47,578 d.) $10,016 5. Which of the following statements is true when using the percentage of net credit sales method? a.) This method is estimating a percent of sales made for which payment will not be collectible. b.) This method is estimating a percent of cash sales made for which payment will not be counted. c.) This method is estimating a percent of credit sales made for which payment will not be collectible. d.) This method is determining the actual dollar value of credit sales made for which payment will not be collectible