1. Two methods of accounting for uncollectible accounts are the (Points : 2) allowance method and the accrual method.
allowance method and the net realizable method.
direct write-off method and the accrual method.
direct write-off method and the allowance method.
Wholesaler offers a cash discount to a retailer.
Retailer offers a cash discount to a customer.
All of these are standard practices.
that the credit policy is too lenient.
of a sound credit policy.
of poor judgments on the part of the credit manager.
depreciating valuing and collecting.
recognizing valuing and disposing.
accrual bad debts and disposing.
non-trade receivables.
trade receivables.
merchandise receivables.
cash-good value.
gross cash value.
cash-equivalent value.
The accounts affected by the journal entry made by Annie’s Sport Shop to record the finance charge are (Points : 2)
Cash
Cash
Finance Receivable
Accounts Receivable
Interest Payable
Accounts Receivable
Interest Revenue
$2000
$3000
$3200
percentage of receivables basis.
percentage of sales basis.
percentage of receivables and percentage of sales basis.
note receivable.
accounts receivable.
income tax receivable.