1. Collections of accounts receivable that previously have been written off are credited to:
A.a gain account
B.accounts receivable
C.bad debts expense
D.retained earnings
2.Which of the following do not change the balance in Accounts receivable?
A.Returns on credit sales
B.Collections from customer accounts
C.Bad debts expense adjustment
D.Write-offs
The following facts relate to Questions 3 through 7
3.On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000 with credit terms 2/10, n/30. Flores uses the gross method of accounting for cash discounts. What is the correct entry for Flores on November 10?
A.
|
Accounts receivable
|
7,840
|
|
|
Sales
|
|
7,840
|
B.
|
Accounts receivable
|
8,000
|
|
|
Sales
|
|
8,000
|
C.
|
Accounts receivable
|
7,840
|
|
|
Cash discounts
|
160
|
|
|
Sales
|
|
8,000
|
D.
|
Accounts receivable
|
8,000
|
|
|
Cash discounts
|
|
160
|
|
Sales
|
|
7,840
|
4.On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000 with credit terms 2/10, n/30. Flores uses the gross method of accounting for cash discounts. What is the correct entry for Flores on November 17, assuming the correct payment was received on that date?
A.
|
Cash
|
7,840
|
|
|
Accounts receivable
|
|
7,840
|
B.
|
Cash
|
7,840
|
|
|
Sales discounts
|
160
|
|
|
Accounts receivable
|
|
8,000
|
C.
|
Cash
|
7,840
|
|
|
Sales
|
160
|
|
|
Accounts receivable
|
|
8,000
|
D.
|
Cash
|
8,000
|
|
|
Sales discounts
|
160
|
|
|
Accounts receivable
|
|
8,000
|
|
Sales
|
|
160
|
5. On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000 with credit terms 2/10, n/30. Flores uses the gross method of accounting for cash discounts. What is the correct entry for Flores on December 5, assuming the correct payment was received on that date?
A.
|
Cash
|
8,000
|
|
|
Accounts receivable
|
|
7,840
|
|
Discounts revenue
|
|
160
|
B.
|
Cash
|
8,000
|
|
|
Accounts receivable
|
|
7,840
|
|
Interest revenue
|
|
160
|
C.
|
Cash
|
8,160
|
|
|
Accounts receivable
|
|
8,000
|
|
Interest revenue
|
|
160
|
D.
|
Cash
|
8,000
|
|
|
Accounts receivable
|
|
8,000
|
6. On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000 with credit terms 2/10, n/30. What entry would Flores make on November 17, assuming the correct payment was received on that date if the net method of accounting for cash discounts had been used instead?
A.
|
Cash
|
7,840
|
|
|
Accounts receivable
|
|
7,840
|
B.
|
Cash
|
7,840
|
|
|
Sales discounts
|
160
|
|
|
Accounts receivable
|
|
8,000
|
C.
|
Cash
|
7,840
|
|
|
Sales
|
160
|
|
|
Accounts receivable
|
|
8,000
|
D.
|
Cash
|
8,000
|
|
|
Sales discounts
|
160
|
|
|
Accounts receivable
|
|
8,000
|
|
Sales
|
|
160
|
7. On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000 with credit terms 2/10, n/30. What entry would Flores make on December 10, assuming the correct payment was received on that date if the net method of accounting for cash discounts was used instead?
A.
|
Cash
|
8,000
|
|
|
Accounts receivable
|
|
7,840
|
|
Discounts revenue
|
|
160
|
B.
|
Cash
|
8,000
|
|
|
Accounts receivable
|
|
7,840
|
|
Interest revenue
|
|
160
|
C.
|
Cash
|
8,160
|
|
|
Accounts receivable
|
|
8,000
|
|
Interest revenue
|
|
160
|
D.
|
Cash
|
8,000
|
|
|
Accounts receivable
|
|
8,000
|