Chapter 09 Accounting for Receivables LTIPLECHOICEQUESTIONS I) A receivable is an amount due from another party A) True B) False 2) Credit sales are recorded by crediting Accounts Receivable. A) True B) False 3) As long as a company accurately records total credit sales information, it is not necessary to have separate accounts for specifie customers. A) True B) False 4) If a customer owes interest on accounts receivable, Interest Receivable is debited and Accounts Receivable is credited. A) True B) False 5) If a credit card sale is made, the seller debits Cash and credits Sales for the same amount. A) True B) False 6) Installment Accounts Receivable are classified as non-current assets if the installment period is more than one year, even if the seller regularly offers customers such terms. A) True B) False 7) Companies can report credit card expense as a reduction in net sales or as a selling expense. A) True B) False 8) BizCom's customer, Redding, paid off an $8,300 balance on its account receivable. BizCom sho record the transaction as a debit to Accounts Receivable-Redding and a credit to Cash. A) True B) False