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I only need 2, 5, & 6 please. 2. Credit terms of 2/10, n/30 mean that if payment is made in two days, a 10%
I only need 2, 5, & 6 please.
2. Credit terms of "2/10, n/30" mean that if payment is made in two days, a 10% discount will be given; if not paid within two days, the full invoice price will be due in thirty days. A. True B. False 3. Credit card discounts are reported as operating expenses on an income statement. A. True B. False 4. Gross profit decreases when sales discounts increase. A. True B. False 5. Which of the following is correct when bad debt expense is recorded at year-end? A. Current assets will increase. B. Gross profit will decrease. C. Net Income will decrease. D. Current liabilities will decrease. 6. At year-end, Chief Company has a balance of $10,000 in accounts receivable of which $1,000 is more than 30 days overdue. Chief has a credit balance of $100 in the allowance for doubtful accounts before any year-end adjustments. Using the aging of accounts receivable method, Chief estimates that 1% of current accounts and 10% of accounts over thirty days are uncollectible. What is the amount of bad debt expense? A. $90. B. $190. C. $290. D. $100
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