ACCT101 - Principles of Accounting Exam #2 - April 1, 2022 6) Credit sales (or sales on account) are recorded as: A) Debit Cash, credit Deferred Revenue B) Debit Revenue, credit Accounts Receivable. C) Debit Cash, credit Revenue. D) Debit Accounts Receivable, credit Revenue. 7) Benjamin Moore Paint Co shipped the wrong shade of paint to a customer. The customer agreed to keep the paint upon being offered a 10% price reduction. The price reduction is an example of a: A) Sales allowance. B) Sales discount. C) Sales return D) Sales revenue 8) A company has the following information: Total revenues $ 430,000 Sales returns and allowances $ 25,000 Sales discounts $ 15,000 Ending inventory $ 20,000 What is the amount of net revenues for the company? A) $165,000 B) $115,000 C) $340,000 D) $390,000 9) A company's adjustment for uncollectible accounts at year-end based upon an aging analysis would include a: A) Debit to Bad Debt Expense. B) Credit to Accounts Receivable. C) Debit to Accounts Receivable. D) Debit to Allowance for Uncollectible Accounts. 10) Allowance for Uncollectible Accounts is: A) An expense account B) A contra asset account. C) A contra revenue account. D) A liability account. 11) At the end of its first year of operations, a company has accounts receivable of $1,500,000. The company expects to collect 90% of these accounts. The company's year-end adjusting entry for uncollectible accounts would be: A) Debit Bad Debt Expense; Credit Accounts Receivable for $150,000 B) Debit Allowance for Uncollectible Accounts; Credit Bad Debt Expense for $150,000 c) Debit Bad Debt Expense; Credit Allowance for Uncollectible Accounts for S150,000 D) Debit Allowance for Uncollectible Accounts; Credit Accounts Receivable for $150,000