Transcription of Chapter 8 Questions Multiple Choice
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Chapter 8 Question Review 1 Chapter 8 Questions Multiple Choice 1. When customers make purchases with a national credit card, the retailer a. is responsible for maintaining customer accounts. b. is not involved in the collection process. c. absorbs any losses from uncollectible accounts. d. receives cash equal to the full price of the merchandise sold from the credit card company. 2. The two methods of accounting for uncollectible accounts are the direct write-off method and the a. Accrual Method b. Net Realizable Method c. Bad Debt Method d. allowance Method 3. A 90-day note dated April 20 would mature on a.
Sales Returns and Allowances Nov. 5 1,000 Accounts Receivable—Barlow, Inc. 20X1 1,000 Cash Nov. 9 12,740 Sales Discounts ($13,000 x 0.02) 20X1 260 Accounts Receivable—Barlow, Inc. (sales – ret.) × (1 –.02) 13,000 Interest Receivable Dec. 31 350 Interest Revenue 350 Cash Jun. 1 10,600 Notes Receivable 20X2 10,000
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