49 what would be incorrect about reporting accounts receivable in the balance sheet 4314204

49 what would be incorrect about reporting accounts receivable in the balance sheet 4314204

49.What would be incorrect about reporting accounts receivable in the balance sheet? 

A. Presenting accounts receivable net of allowance for doubtful accounts.

B. Presenting accounts receivable at estimated net realizable value.

C. Presenting accounts receivable less bad debt expense and write-offs.

D. Presenting accounts receivable at gross amount, less allowance for doubtful accounts.

50.Which of the following statements correctly describes the effect of recording the collection of a $10,000 account receivable for which a 2% sales discount was recorded at the time of collection?

A. Current assets will remain the same.

B. Gross profit will decrease $200.

C. Accounts receivable will decrease $9,800.

D. Net sales will increase $9,800.

51.Which of the following journal entries correctly records the collection of an account receivable for which a 1% sales discount was recorded at the time of collection? 

A. Cashxxx

B. Cashxxx

C. Cashxxx

D. Cashxxx

52.Which of the following correctly describes the effect of a journal entry involving the recording of a sales return?

A. Gross profit decreases.

B. Net sales increases.

C. Current assets remain the same.

D. Net income increases.

53.Which of the following correctly describes the effect of a sales discount?

A. Gross profit increases.

B. Net sales increases.

C. Current assets remain the same.

D. Net income decreases.

54.Which of the following does not correctly describe the effect of a credit card discount?

A. Net sales decrease and gross profit decreases.

B. Net sales decrease and net income decreases.

C. Operating expenses remain the same and net income decreases.

D. Neither operating expenses, nor net income is affected.

55.Which of the following does not correctly describe the effect of a journal entry involving the recording of a credit card discount?

A. Net sales decrease and net income decreases.

B. Net sales decrease, operating expenses increase, and net income remains the same.

C. Operating expenses remain the same and net income decreases.

D. Net sales decrease and gross profit decreases.

56.Which of the following correctly describes credit terms of 2/10, n/30?

A. A two percent discount for early payment is available if the invoice is paid before the tenth day of the month following the month the sale.

B. A two percent discount for early payment is available within ten days of the date of sale.

C. A ten percent discount for early payment is available if the invoice is paid within two days of the date of the invoice.

D. A two percent discount for early payment is available if the invoice is paid after the tenth day, but before the thirtieth day of the invoice date.

57.A customer purchased and received $5,000 of goods on credit from Discount Paper Supply on September 1. The customer received the bill on September 13 and mailed a $5,000 check on September 30. Discount Paper Supply received the check on October 4. On which of the following dates should Discount Paper Supply record sales revenue?

A. September 1

B. September 13

C. September 30

D. October 4

58.When a credit sale is made with terms of 2/10, n/30 on May 10 and the customer's check is received on May 19, which of the following is true about the May 19 journal entry?

A. The debit to cash will equal the credit to accounts receivable because the discount was recorded on May 10.

B. There will be a debit to sales discounts on May 10.

C. The debit to cash will be less than the credit to accounts receivable on May 19.

D. There will be a credit to sales discounts on May 19.

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