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You are watching: What type of receivables result from sales transactions?
Equipment 1: Notes or accounts receivables that results from sales transactions are frequently dubbed "Trade receivables" Hence alternative c is correct. Systems 2: Under t…View the full answer
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Transcribed picture text: 1. Notes or accounts receivables that result from sales transactions are frequently called: a) sales receivables b) nontrade receivables c) trade receivables. d) merchandise receivables 2. Under the allowance approach, creating off an uncollectible account: a) affects just balance sheet accounts. b) affects both balance sheet and also earnings statement accounts. c) affects just earnings statement accounts. d) is not acceptable practice. 3. When an account becomes uncollectible and must be written off a) allowance for doubtful accounts will certainly be attributed. b) allowance for unconvinced accounts will be debited. c) poor debt cost will be debited. d) accounts receivable will be debied 4. When a company provides the allowance strategy to account for uncollectible accounts the arsenal of an account that had been previously written off: a) will increase profit. b) will decrease profit c) will not impact profit. d) will boost sales. 5. An aging of a company's accounts receivable shows that $ 4.000 is estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,100 crmodify balance the adjusting enattempt required to document approximated uncollectible accounts will incorporate a a) debit to Bad Debt Expense for $4,000. b) debit to Allowance for Doubtful Accounts for $2,900. c) delittle bit to Bad Debt Expense for $2.900 d) crmodify to Accounts Receivable for $4,000 6. An increase in the bad debt price would certainly not be caused by: a) an increase in cash sales b) bad economic climate c) an increase in credit sales d) a decrease in the top quality of customers 7. An aging of a company's accounts receivable suggests $ 10.000 is estimated to be uncolectible. The agency has actually a $ 2.000 delittle bit balance in its allowance for doublu accounts. The adjustment to record estimated credt losses for the duration will certainly require ain: a) $ 8.000 debit to Bad Debt Expense. b) $ 8.000 crmodify to the Allowance for Doubtful Accounts c) $ 12,000 delittle bit to Bad Debt Expense. d) $ 12,000 crmodify to Accounts Receivable 8. Allowance for Doubtful Accounts on the balance sheet: a) is offset against full present assets b) boosts the carrying amount of accounts receivable c) appears under the heading Current Liabilities." d) decreases gross accounts receivable