11. Which of the following is true when accounts receivables ured borowing A) The transaction may be accounted for either as B) The receivables are used as collateral for a C) The factor D) The financing cost expense are factored without recourse? depending upon the substance the owner of the receivables. collecting the receivables. collection period of the receivables. of the transaction. promissory note issued to the factor by assumes the risk of collectability and absorbs any credit losses in terest expense) should be recognized ratably over the 12. What is the normal journal entry when writing-off an account as allowance method? A) Debit Allowance for Doubtful Accounts, credit Accounts B) Debi Allowance for Doubtful Accounts, credit Bad Debt Expense. C) Debit Bad Debt Expense, credit Allowance for Doubtful Accounts. ) bebit Accounts Receivable, credit Allowance for Doubtful Accounts. annual bad debt expense best achieves Which of the following methods of determining the matching concept? A) Percentage of sales B) Percentage of ending accounts receivable 13. Percentage of average accounts receivable D) Direct write-off When a customer purchases merchandise inventory from a business organization, she may be given a discount which is designed to induce prompt payment. Such a is called a(n) A) trade discount. B) nominal discount. C) enhancement discount. D) cash discount. 14. 15. Bank overdrafts, if material, should be A) reported as a deduction from the current asset section. B) reported as a deduction from cash. C) netted against cash and a net cash amount reported. D) reported as a current liability