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15) The Company sold merchandise for $2,000 and accepted the customer's BB Credit Card. BB charges a 3% fee and transfers cash to the company

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15) The Company sold merchandise for $2,000 and accepted the customer's BB Credit Card. BB charges a 3% fee and transfers cash to the company at the end of the week. All of the following are included in the entry to record the sale except: a. b. c. d. Debit cash for $1,940 Debit accounts receivable for $1,940 Debit credit card expense for $60 Credit sales for $2,000 16) Which of the following doesn't follow the expense recognition (matching) principle? a. b. c. d. Percent of sales method Percent of receivables method Aging of receivable method Direct write off method 17) Which of the following uses an income statement focus? a. b. c. d. Percent of sales method Percent of receivables method Aging of receivable method Direct write off method 18) The company determines that the accounts receivable from ABC is uncollectible. Using the direct write off method, which journal entry would the company make to record the write off? a. Debit- Accounts Receivable, Credit-Bad Debt Expense b. Debit -Bad Debt Expense, Credit-Accounts Receivable c. Debit -Bad Debt Expense, Credit-Allowance for Doubtful Accounts d. Debit-Allowance for Doubtful Accounts, Credit- Accounts Receivable 19) The company determines that the accounts receivable from ABC is uncollectible. Using the aging of receivables method, which journal entry would the company make to record the write off? a. Debit - Accounts Receivable, Credit-Bad Debt Expense b. Debit- Bad Debt Expense, Credit-Accounts Receivable c. Debit-Bad Debt Expense, Credit-Allowance for Doubtful Accounts d. Debit- Allowance for Doubtful Accounts, Credit-Accounts Receivable 20) Allowance for doubtful accounts is which type of account? a. Contra Revenue b. Contra Asset c. Liability d. Expense

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