Accounts receivable are recorded at the invoice price. They are reduced by Sales Returns and Allowances. Cash discounts reduce the amount received on accounts receivable. *

True

False

A stock dividend decreases total stockholders equity and reduce a companys cash balance. *

True

False

If a company has 600,000 shares of common stock authorized, and has 500,000 shares issued, and holds 20,000 shares of common stock as treasury stock, the general ledger account for common stock, $5 par value would have a balance of $3,000,000. *

True

False

Uncollectible Accounts Receivable or credit losses are considered a normal and necessary risk of doing business on a credit basis. Credit losses may be recognized under the allowance method or by the direct write-off method. *

True

False