Chapter 2, Problem 5ISTQ

Graves Construction is journalizing two transactions related to uncollectible accounts. The first transaction does not affect cash flows. but the second transaction does affect cash flows. If Graves Construction uses the allowance method to account for uncollectibles, which of the following scenarios may pertain to these transactions? O The first transaction is to record the sale of uncollectible accounts to a factor, and the second transaction is to record the write-off of an uncollectible account. O The first transaction is to record the recovery of a previously written off collectible account, and the second transaction is to record the estimate of uncollectible accounts. The first transaction is to record the write-off of an uncollectible account, and the second transaction is to record the recovery of a previously written off uncollectible account. O The first transaction is to record the write-off of an uncollectible account, and the second transaction is to record the estimate…

24) Identify, which of the statements are correct: I Cheque is used to make safe and convenient payment. II An issuer of cheque is called a drawee, and the one to whom it’s issued is called drawer. Correct answer

Which of the following is NOT a purpose of control accounts? O a. to identify all errors where the trial balance agrees O b. to provide a total for trade receivables and trade payables О с. to verify the accuracy of the individual ledger accounts O d. to assist in the preparation of financial statements