Answer Key Chapter 7 Quiz.f11

Answer Key Chapter 7 Quiz.f11 - Name _ ACG 301 Quiz Chapter...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Name __________________________________________ ACG 301 Quiz Chapter 7 Fall 2011 1. Why is the allowance method preferred over the direct write-off method of accounting for bad debts? A) Allowance method is used for tax purposes. B) Estimates are used. C) Determining worthless accounts under direct write-off method is difficult to do. D) Improved matching of bad debt expense with revenue. 2. Why would a company sell receivables to another company? A) To improve the quality of its credit granting process. B) To limit its legal liability. C) To accelerate access to amounts collected. D) To comply with customer agreements. 3. AG Inc. made a $15,000 sale on account with the following terms: 1/15, n/30. If the company uses the gross method to record sales made on credit, what is/are the debit(s) in the journal entry to record the sale? A) Debit Accounts Receivable for $14,850. B) Debit Accounts Receivable for $14,850 and Sales Discounts for $150. C)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

Answer Key Chapter 7 Quiz.f11 - Name _ ACG 301 Quiz Chapter...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online