1.When using the allowance method for uncollectible accounts, the percentminusofminussales method is called the:

A.allowance approach.

B.Balance Sheet approach.

C.direct writeminusoff approach.

D.Income Statement approach.

How are net realizable receivables calculated?

A.Allowance for Doubtful Accounts plus NSF checks

B.Accounts Receivable plus the Allowance for Doubtful Accounts

C.Accounts Receivable less the Allowance for Doubtful Accounts

D.Accounts Receivable divided by the Allowance for Doubtful Accounts

On September 8, Alice paid $3,568 to Cheshire Co. to fulfill her promissory note agreement. Of the $3,568, $400 is interest. The journal entry Cheshire Co. will record is to:

A.debit Cash, $3,568; credit Note Receivable/Alice, $3,168; credit Interest Revenue, $400.

B.debit Note Receivable/Alice, $3,568; credit Cash $3,168; credit Interest Revenue, $400.

C.debit Cash, $3,568; credit Note Receivable/Alice, $3,568.

D.debit Note Receivable/Alice, $3,568; credit Cash $3,568.