Which of the following transactions do not change the net realizable value of accounts receivable? Select all that apply. $(2$ points$)$

a sales return where the original sale was on account

recording bad debt expense

writing off an account receivable

receiving a cheque from a customer whose account receivable was previously written off

cash sales

If$,$ at your year$-$end, you determine that inventory which originally cost you $$20$ per item can now only be sold for $$25$ each instead of the usual selling price of $$40$ each, what must you do$?(1$ point$)$

Multiple choice $1$ Question $1$

reduce Inventory and increase Inventory Losses or Cost of Goods Sold by $$5$ per item

increase Inventory Losses by $$5$ per item but do not adjust Inventory until the items are sold

make no adjustments at all

reduce Inventory by $$5$ per item but do not record a loss until the items are sold

return the items to your supplier

A company changed its inventory costing formula from FIFO to weighted average this year, and disclosed the reason and effect of the change on its financial statements. Which of the following is correct? $(1$ point$)$

Multiple choice $2$ Question $1$

going concern is violated

unit of measure is violated

comparable is followed

timely is followed

faithful is followed

The Allowance for Doubtful Accounts is classified as a$($n$)(1$ point$)$

Multiple choice $3$ Question $1$

current liability

expense

current asset

long term liability

contra asset

Which of the following represents a connection between the income statement and the other financial statements? $(1$ point$)$

Multiple choice $4$ Question $1$

Retained Earnings appears on both the income statement and the statement of retained earnings.

Net income appears on both the income statement and the statement of retained earnings.

Owners' Equity appears on both the income statement and the statement of retained earnings.

The beginning cash balance appears on both the income statement and the statement of cash flows.

The income statement is not connected to any other financial statement.

Which business sector$($s$)$ would Best Buy be in$?(1$ point$)$

Multiple choice $5$ Question $1$

tertiary

tertiary and secondary

primary and secondary

primary

secondary

Rathburn Co$.$ borrowed $$30,000$ from its bank on August $1,$ at $5\%$ interest, for $4$ months. How much interest will the company pay over the entire term of this loan? $(2$ points$)$

Answer $1$ Question $1$

Which of the following transactions do NOT affect bad debt expense? Select all that apply. $(3$ points$)$

receiving a cheque from a customer whose account receivable was previously written off

writing off an account receivable

using the aging method when estimating the required Allowance for Doubtful Accounts

applying the same percentage to all outstanding accounts receivable when estimating the required Allowance for Doubtful Accounts

giving a cash refund to a customer who returned an item that he had already paid for

A customer whose account receivable was previously written off sent in a cheque. How might a company record this transaction? Select all that apply. $(2$ points$)$

increase Cash and decrease Bad Debt Expense

increase a revenue account and decrease Bad Debt Expense

increase both Allowance for Doubtful Accounts and Accounts Receivable

increase cash and a revenue account

Increase Cash and decrease Accounts Receivable

Why is the aging method, used to calculate the allowance for doubtful accounts, preferable to using a single percentage for all receivables? Select all that apply. $(2$ points$)$

It is the only method allowed by GAAP.

It is easier to assign reasonable percentages to several categories than to use one percentage only for all