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Net credit sales are normally sold on terms of n/30. Net credit sales total $ 50,000 and average gross accounts receivable total $ 5,000 in
Net credit sales are normally sold on terms of n/30. Net credit sales total $ 50,000 and average gross accounts receivable total $ 5,000 in the current period. The collection period is: O a. 30 days. O b. 73 days. 36.5 days. O d. 10 days. Oc. Under the allowance method, the entry to write off an uncollectible account results in a debit to: O a. Allowance for Doubtful Accounts and a credit to Accounts Receivable. O b. Bad Debts Expense and a credit to Allowance for Doubtful Accounts. O c. Allowance for Doubtful Accounts and a credit to Bad Debts Expense. O d. Bad Debts Expense and a credit to Accounts Receivable. When an interest-bearing note is dishonoured at maturity and ultimate collection of the principal and interest is expected, the entry for the dishonouring-assuming no previous accrual of interestshould include: O a. A debit to Allowance for Doubtful Accounts. O b. Only a credit to Notes Receivable. OC. A credit to Notes Receivable and Interest Receivable. O d. A credit to Notes Receivable and Interest Revenue
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