Selling accounts receivables to factors and allowing credit terms such as 2/10, n/30

a. represent common business practices.

b. represent ways to accelerate receivables collections.

c. result in cash collections that are less than the gross accounts receivable.

d. All of the above answers are correct.

When a company receives payment from a customer whose account receivable was previously written off, the company

	a.	credits the allowance for doubtful accounts by the amount of payment received.
	b.	records an increase in net revenue.
	c.	records a gain from unexpected collections.
	d.	records a decrease in bad debt expense.

Adjusting entries are typically required at the end of an accounting period

	a.	to ensure that all liabilities are reported properly on the balance sheet.
	b.	to ensure that the net income of the period includes all revenues and expenses.
	c.	to ensure that all assets are measured properly on the balance sheet.
	d.	All of the answers above are correct.