The collection of an $1, 500 By debit to Cash for account within the 2 percent discount period will result in a A) credit to Cash $1, 470. B) debit to Accounts Receivable for $1, 470. C) debit to Sales Discounts for $ 30. D) credit to Accounts Receivable for $1, 470. To record estimated uncollectible accounts using the allowance method, the adjusting entry would be a A) debit to Accounts Receivable and a credit to Allowance for Doubtful Accounts. B) debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable. C) debit to Loss on Credit Sales and a credit to Accounts Receivable D) debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts. Otto's Tune-Up Shop follows the revenue recognition principle. Otto services a car on August 31. The customer picks up the vehicle on September 1 and mails the payment to Otto on September 5. Otto receives the check in the mail on September 6. When should Otto show that the revenue was recognized? A) August 1 B) August 31 C) September 5 D) September 6 The primary difference between a periodic and perpetual inventory system is that a periodic system A) provides better control over inventories B) keeps a record showing the inventory on hand at all time. C) determines the inventory on hand only at the end of accounting period. D) records the cost of the sale on the date the sale is made. The Sales Returns and Allowances account is classified as a(n) A) contra asset account. B) asset account. C) contra revenue account. D) expense account