Which is a valid statement regarding the gross price, net price and allowance methods of recording accounts receivable from customers?

1. Sales journal must contain the following: * A) Date, Name and Address of Buyer, Sales Invoice or OR No. B) Name and Address of Buyer, Sales Exempted and RDO Number C) Total Invoice Amount, VAT Output Tax, and Date of when the amount is to be remitted to BIR D) None of the above. 2. Included in non-deductible interest expense are: * A) Interest paid in advance B) Interest treated as capital expenditures C) Interest on amortization D) All of the above 3. These are the data included in the Purchase Journal * A) Name and Address of Supplier, Date, Total Invoice Amount B) Name and Address of Buyer, Date, Total Invoice Amount C) Name and Address of Supplier, Date, VAT Output tax D) Name and Address of Supplier, Date, Delivery Receipt

What are Revenue Recognition and Matching Principles?

If a fictitious sale has been recorded, this affects the a) existence of sales. b) valuation of accounts receivable. c) occurrence of sales and existence of accounts receivable. d) occurrence of accounts receivable.

Which of the following accounts are characterized as a "contra" account? (Select ALL that apply) O Equipment O Deferred Revenue OAccumulated Depreciation O Accounts Payable O Depreciation Expense O Sales Allowances O Sales return O Allowance for Uncollectible A/R O Bad Debt Expense O Accounts Receivable O Notes Payable O Cost of Goods Sold ASUS

The normal balance of the account "Sales Allowances" is a Debit; it is a contra revenue account to Sales Revenue OB. Credit; it is a contra asset account to Accounts Receivable OC. Debit, it is an expense in the income statement OD. Credit, it is a contra expense account to Bad Debt Expense -because A.

Which of the following accounts would normally have adebit balance?a. Inventoryb. Sales Returns and Allowancesc. Sales Discountsd. All of the above

18 - The entity made a discount due to the premature payment of the receivable arising from the sale it made on credit. In which account and how should this transaction be recorded? A) Domestic Sales account receivable B) Sales Discounts account receivable C) To the debt of the Domestic Sales accountD) To the debt of General Administrative Expenses accountE) To the debt of Sales Discounts account

3.Which of the following transactions would not result in an adjustment to the inventory account under a perpetual inventory system? A)The return of merchandise by a customer.   B)The sale of merchandise for cash.   C)The sale of merchandise on credit.   D)The receipt of payment from a customer within the discount period.

Which method, the percentage-of-receivables method or the percentage-of-credit-sales method, is typically used in practice? Why?