Harvey's Wholesale Company sold supplies of $46,000 to Northeast Company on April 12 of the current year, with terms 1/15, n/60. Harvey uses the net method of accounting for cash discounts. What entry would Harvey's make on June 10, assuming the customer made the correct payment on that date?

Cash	46,000
Accounts receivable		45,540
Discounts revenue		460

Cash	46,000
Accounts receivable		45,540
Interest revenue		460

Cash	46,000
Accounts receivable		46,000

Cash	46,460
Accounts receivable		46,000
Interest revenue		460

/////////////////////////////////////////////////////////////////////////

Galaxy sells used videogames for cash and provides a one-week return right. Returns are material and reasonably predictable. Galaxy should:

Not record sales until the right to return has expired.

Record a contra-receivable in the year of the sale.

Recognize a refund liability associated with estimated returns.

Credit sales in the period of the return.

//////////////////////////////////////////////////////////////////////////

False Value Hardware began 2016 with a credit balance of $32,000 in the allowance for sales returns account. Sales and cash collections from customers during the year were $650,000 and $610,000, respectively. False Value estimates that 6% of all sales will be returned. During 2016, customers returned merchandise for credit of $28,000 to their accounts. What is the balance in the allowance for sales returns account at the end of 2016?

$11,000.

$39,000.

$43,000.

$21,000.

//////////////////////////////////////

False Value Hardware began 2016 with a credit balance of $32,000 in the allowance for sales returns account. Sales and cash collections from customers during the year were $650,000 and $610,000, respectively. False Value estimates that 6% of all sales will be returned. During 2016, customers returned merchandise for credit of $28,000 to their accounts. False Value's 2016 income statement would report net sales of:

$622,000.

$607,000.

$646,000.

$611,000.

///////////////////////////////////////////////////////////////////

Rusty Hardware makes only cash sales. It began 2016 with a credit balance of $32,000 in the refund liability account. Sales during 2016 were $600,000. Rusty estimates that 6% of all sales will be returned. During 2016, customers returned merchandise for credit of $28,000 to their accounts. What is the balance in the allowance for sales returns account at the end of 2016?

$32,000.

$39,000.

$43,000.

$40,000.

/////////////////////////////////////////////////////////////////

Accounts receivable are normally reported at the:

Present value of future cash receipts.

Current value plus accrued interest.

Expected amount to be received.

Current value less expected collection costs.

////////////////////////////////////////////////////////////////

Collection of accounts receivable that previously have been written off results in an increase in cash and an increase in:

Accounts receivable.

Allowance for uncollectible accounts.

Bad debts expense.

Retained earnings.

/////////////////////////////////////////////////////////////////

The balance in accounts receivable at the beginning of 2016 was $300. During 2016, $1,600 of credit sales were recorded. If the ending balance in accounts receivable was $250 and $100 in accounts receivable were written off during the year, the amount of cash collected from customers during 2016 was:

$1,600.

$1,650.

$1,550.

$1,900.

//////////////////////////////////////////////////////////////

In the balance sheet at the end of its first year of operations, Dinty Inc. reported an allowance for uncollectible accounts of $82,000. During the year, Dinty wrote off $32,000 of accounts receivable it had attempted to collect and failed. Credit sales for the year were $2,200,000, and cash collections from credit customers totaled $1,950,000. What bad debt expense would Dinty report in its first-year income statement?

$50,000.

$82,000.

$114,000.

Can't be determined from the given information

/////////////////////////////////////////////////////////////////