The accounts receivable ledger is simply a detailed listing of the same information that is summarized in the accounts receivable account in the general ledger True False The sales journal can be used to enter any kind of sales, including cash sales and sales on account. True False If merchandise is shipped FOB destination, the merchandise is the property of the selling company until it is received by the buying company. True O False A method of assigning merchandise cost that requires that each item sold and each item remaining in Inventory be separately identified with respect to its purchase cost is called last-in, first-out. True At the end of the accounting period, the merchandise Inventory account is credited for the beginning inventory amount. True False Both the debit and credit amounts in the merchandise inventory account at the end of an accounting period are used to calculate the cost of goods sold. True Orale Gross profit less operating expenses produces the income from operations. True False The statement of owner's equity summarizes all changes in the owner's equity during the period. True False The Allowance for Doubtful Accounts account may have a debit balance prior to adjustment. True O False Two basic methods are used for estimating the amount of uncollectibles at the end of the accounting period-the percentage of sales method and the percentage of receivables method OF When a note receivable matures, the amount must be paid directly to the payee. O True O False A three-month note dated April 1 would be due on July 1. O True False The consumption or exhaustion of wasting assets is called depletion. True O False If there is an improvement to a building that extends the life of the building, the total cost incurred should be debited to the long-term asset. True False The partnership form of organization is more popular among professional service enterprises than among merchandise enterprises True False If the partnership agreement does not state how profits and losses are to be shared, they are allocated according to the partners' capital interests. True False Errors in the ending inventory have a direct effect on net income for the period. True False