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Unformatted text preview: Chapter 9 1. Buehler Company on June 15 sells merchandise on account to Chaz Co. for $1,000, terms 2/10, n/30. On June 20, Chaz Co. returns merchandise worth $300 to Buehler Company. On June 24, payment is received from Chaz Co. for the balance due. What is the amount of cash received? A. $700 . B. $680 . C. $686 . D. Non e of the abov e. 2. Which of the following approaches for bad debts is best described as a balance sheet method? A. Perc enta ge- of- recei vabl es basis . B. Dire ct writ e-off meth od. C. Perc enta ge- of- sales basis . D. Both a and b. 3. Net sales for the month are $800,000, and bad debts are expected to be 1.5% of net sales. The company uses the percentage- of-sales basis. If the Allowance for Doubtful Accounts has a credit balance of $15,000 before adjustment, what is the balance after adjustment? A. $15, 000. B. $27, 000. C. $23, 000. D. $31, 000. 4. In 2008, Roso Carlson Company had net credit sales of $750,000. On January 1, 2008, Allowance for Doubtful Accounts had In 2008, Roso Carlson Company had net credit sales of $750,000....
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- Spring '07
- Credit card, Promissory note, Acc ount, Rece ivabl