Cash received in advance of providing a service or product should initially be recognized with a a) Debit to revenue b) Debit to unearned revenue c) Debit to revenue payable d) Credit to unearned revenue e) Credit to revenue If a company uses the allowance for doubtful accounts method what, s the overall effect in the accounting equation when a specific account is written-off a) Assets increase. Liabilities decrease b) Assets Increase. Equity increases c) Liabilities Increase. Assets decrease d) Assets decrease, Equity decreases e) No effect, overall If a bond with a face value of $200,000 is Issued at 102 which of the following are possible portions of the journal entry to record the transaction? a) Debit Premium on Bonds Payable for $4,000. b) Debit Cash for $200,000 c) Credit Bonds Payable for $204,000. d) Debit Cash for $204,000 e) Both C and D A company sold $12,000 worth of scooters with an extended warranty. It estimates that 2% of these sales will result in warranty work. The company should: a) Consider the warranty expense a remote liability since the rate is only 2%. b) Recognize warranty expense at the time the warranty work is performed. c) Recognize warranty expense and a liability at the time of sale. d) Consider warranty expense a contingent liability. e) Recognize warranty liability when the company purchases the trampolines