The accounts receivable account in the general ledger serves as a control account because it summarizes the total of the receivables from all customers.

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A$)$ True

B$)$ False

Which of the following is a benefit of selling on credit?

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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.

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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.

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A$)$ True

B$)$ False

Allowance for doubtful accounts has a debit balance of $$980$ at the end of the current year $($prior to adjustment$).$ An analysis of the accounts in the customers' ledger indicates

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uncollectible accounts of $$16,000.$ The adjusting entry would require a credit to:

A$)$ Accounts receivable account for $$15,020.$

B$)$ Allowance for doubtful account for $$15,020.$

C$)$ Bad debt expense for $$16,980.$

D$)$ Allowance for doubtful account for $$16,980.$

Under the direct write$-$off method, the entry to write off an uncollectible account would include a:

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A$)$ Credit to the customer's account receivable.

B$)$ Credit to the bad debt expense.

C$)$ Debit to the 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.

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A$)$ True

B$)$ False

If the maker of a note does not pay at maturity, the maker is said to dishonour the note.

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A$)$ True

B$)$ False

The acid$-$test ratio tells whether the entity could pay all its current liabilities if they came due immediately.

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A$)$ True

B$)$ False

The practice of selling a note receivable before maturity is called dishonouring the note.

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A$)$ True

B$)$ False

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