Question 11 2.5 pts

Cost of Goods Sold is calculated on the:

Income Statement.

Statement of Owner's Equity.

Post-Closing Trial Balance.

Trial Balance.

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Question 12 2.5 pts

The current balance of Allowance for Doubtful Accounts is considered when calculating the current period's Bad Debts Expense under the following approach:

Direct write-off method

Income statement approach

All of these answers are correct.

Balance sheet approach

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Question 13 2.5 pts

Joe's Auto Repair estimates that approximately 3% of net credit sales are uncollectible. Joe's calculates Bad Debts Expense using the:

gross method.

direct write-off method.

income statement method.

balance sheet method.

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Question 14 2.5 pts

Gross Profit equals:

Sales - Sales Returns and Allowances - Sales Discounts - Cost of Goods Sold.

Cost of Goods Sold - Operating Expenses.

Cost of Goods Sold - Other Expenses.

Net sales - Net Purchases.