Please help me answer the following questions , please also include explanations.

1. All of the following are valid bad debt expense assumptions except:

A. Direct write off method

B. Percentage of sales method

C. Percentage of receivable method

D. Treat bad debts as unusual items that do not often occur.

2. Below are five steps involved in a typical trade transaction. Which step is out of order?

A. Exporter ships the product to the importer

B. The draft is accepted by the importer's bank becoming a banker's acceptance

C. Exporter prepares a 60 day draft on importer in accordance with the letter of credit.

D. Exporter agrees to ship under a letter of credit

E. Importer's bank issues the letter of credit.

3. All of the following statements are true regarding bad debts expense EXCEPT:

A. When using the balance sheet method, the percentage of net credit sales is not considered

B. Calculation of bad debt expense is required at least once a year when a company has receivables

C. When using the income statement method, we concentrate on percentage of net credit sales.

D. All of the above.

4. The estimate of bad debts can be based on either a percentage of net sales or :

A. Percentage of next months anticipated sales

B. Percentage of aged receivables

C. Percentage of actual bad debts deemed uncollectible last period.

D. None of these.

5. A short term borrowing from financial institutions where the loan is secured by accounts receivable:

A. Guaranty

B. Pledge

C. Surety Bond

D. Letters of credit

E. Deed of assignment

F. Suretyship Agreement

6. Comparison with the experience of other companies in your industry will determine whether or not your credit and collection policies are as effective as those of your competitors:

A. Industry averages

B. Payment terms

C. Past history

D. Invoices

E. Cash discounts

F. Delinquency charge

7. The following are the internal factors affecting credit decision EXCEPT ONE:

A. Type of product sold (stock inventory and custom designed, engineered and produced inventory)

B. Seasonal or non seasonal characteristics and shelf-life

C. Profit margin on product

D. Your company's inventory is exceptionally heavy

E. New market ventures and strategies

F. Contact with other suppliers and references