UNIT 4 CHALLENGE 2: Subsidiary 1 Accounts Payable Subsidiary Ledgers LEARNING OBJECTIVE: Identify a transaction that resulted in either a purchases return or a purchase allowance. Which of the following events corresponds with a sales return? O a.) After suffering the loss of her fennec fox, lan agreed to buy back his customer's unused litter. O b.) lan had a sale on prairie dog food: Buy one, get one half off. oc.) lan gave a customer a 20% discount on a marmoset cage. d.) lan sent a specialty cage supplier a payment on account. UNIT 4 - CHALLENGE 2: Subsidiary LEARNING OBJECTIVE: Determine the important components of the allowance method or the direct write-off method. > Suppose during the year, $100 is written off because we are assuming it will not be paid Using the direct write-off method, we will O a.) debit Allowance for Bad Debt $100 and credit Allowance for Bad Debt $100 b.) credit Allowance for Bad Debt $100 and debit Allowance for Bad Debt $100 c.) credit Allowance for Bad Debt $100 and debit Account Receivable subsidiary ledger $100 O d.) debit Allowance for Bad Debt $100 and credit Account Receivable subsidiary ledger $100 4 - Allowance Method: Percentage of Net Credit Sales and Percentage of Receivables LEARNING OBJECTIVE: Calculate the percentage of net credit/receivables or the allowance for bad debt the using the allowance method. Which of the following statements is true when calculating the percentage of receivables? o a.) The percentage is of the accounts payable balance. O b.) The percentage is of the uncollected accounts receivable balance. O c.) The percentage is of the accounts receivable balance. O d.) The percentage is of the net sales balance