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Please answer all the questions. The accounts receivable account in the general ledger serves as a control account because it summarizes the total of the
Please answer all the questions. The accounts receivable account in the general ledger serves as a control account because it summarizes the total of the receivables from all customers. a True b False Which of the following is a benefit of selling on credit? a Some customers do not pay, creating an expense. b Expenses are reduced by making sales to a wide range of customers. c Revenues are increased by making sales to a wider range of customers. d Cash is received sooner. The allowance for doubtful accounts is a contra account to cash. a True b False Under the allowance method, the entry to write off an account that has been deemed uncollectible has an impact on the net income of the firm. a True b False Allowance for doubtful accounts has a debit balance of $ at the end of the current year prior to adjustment An analysis of the accounts in the customers' ledger indicates uncollectible accounts of $ The adjusting entry would require a credit to: a accounts receivable accounts for $ b allowance for doubtful accounts for $ c baddebt expense for $ d allowance for doubtful accounts for $ Under the direct writeoff method, the entry to write off an uncollectible account would include a: a credit to the customer's account receivable b credit to baddebt expense. c debit to allowance for doubtful accounts d credit to allowance for doubtful accounts. Both credit cards and debit cards bear a risk for the card holder, the issuer, and the business accepting the card. a True b False If the maker of a note does not pay at maturity, the maker is said to dishonour the note. a True b False The acidtest ratio tells whether the entity could pay all its current liabilities if they came due immediately. a True b False The practice of selling a note receivable before maturity is called dishonouring the note. a True b False
Please answer all the questions.
The accounts receivable account in the general ledger serves as a control account because it summarizes the total of the receivables from all customers.
a True
b False
Which of the following is a benefit of selling on credit?
a Some customers do not pay, creating an expense.
b Expenses are reduced by making sales to a wide range of customers.
c Revenues are increased by making sales to a wider range of customers.
d Cash is received sooner.
The allowance for doubtful accounts is a contra account to cash.
a True
b False
Under the allowance method, the entry to write off an account that has been deemed uncollectible has an impact on the net income of the firm.
a True
b False
Allowance for doubtful accounts has a debit balance of $ at the end of the current year prior to adjustment An analysis of the accounts in the customers' ledger indicates uncollectible accounts of $ The adjusting entry would require a credit to:
a accounts receivable accounts for $
b allowance for doubtful accounts for $
c baddebt expense for $
d allowance for doubtful accounts for $
Under the direct writeoff method, the entry to write off an uncollectible account would include a:
a credit to the customer's account receivable
b credit to baddebt expense.
c debit to allowance for doubtful accounts
d credit to allowance for doubtful accounts.
Both credit cards and debit cards bear a risk for the card holder, the issuer, and the business accepting the card.
a True
b False
If the maker of a note does not pay at maturity, the maker is said to dishonour the note.
a True
b False
The acidtest ratio tells whether the entity could pay all its current liabilities if they came due immediately.
a True
b False
The practice of selling a note receivable before maturity is called dishonouring the note.
a True
b False
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