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Please help me answer this question. business accounting 2 Please answer all the questions. 1 . The accounts receivable account in the general ledger serves
Please help me answer this question. business accounting
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 Fals
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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