1. If the trial did balance, does this mean all recorded transactions were correct? Use an example to explain. (2 Marks)

1. Louise cannot understand why the net amount of account receivable does not decrease when an uncollectable amount is written off under the allowance method. Clarify this point for Louise. (2 Marks)
2. Why might the financial information in a trial balance not be up to date and complete? Explain two reasons. (2 Marks)
3. Jetstar, Tiger Airways and Virgin Australia have heavily discounted airfares to attract customers. As a management accountant justify how these fares can be offered to customers on the basis of cost-volume-profit relationships? (2 Marks)