Question 40

Q: A recovery of a previously written off account receivable

	A.	Increases cash
	B.	increases net accounts receivable
	C.	reduces bad debt expense
	D.	all of the above.

1 points

Question 41

Q: After 3 years of using a particular machine, the company revises the machine's TOTAL useful life from 8 years to 6 years. Which of the following is true?

	A.	The company's annual depreciation expense for years 4 thru 6 will increase compared to years 1 thru 3.
	B.	The company's annual depreciation expense for years 4 thru 6 will decrease compared to years 1 thru 3.
	C.	The total amount of depreciation expense the company will recognize over the life of the machine will increase.
	D.	The total amount of depreciation expense the company will recognize over the life of the machine will decrease.

1 points

Question 42

Q: During March 2021, a company records revenues of $3,000 for cash sales and $6,000 for sales made on account. During March, customers receive discounts of $150 for early payment of A/R. The company also accepts returned merchandise totaling $215. Write-offs of A/R during March are $200. What is the total NET revenue the company will report for the month of March 2021?

	A.	10,000
	B.	9,850
	C.	9,635
	D.	8,635