Accounts Receivable and Bad Debts Expense Quiz

Question	Answer
When a sale is made with the credit terms of 2/10, net 30, the"10" refers to the ______.	Discount Period
TRANSACTION: On June 1, $800 of goods are sold with credit terms of 1/10, n/30. How much should the seller expect to receive if the buyer pays on June 8 ?	Answer: $792 ($800 - (1% x 800) => $800 - $8)
TRANSACTION: June 1, $800 of goods are sold with credit terms of 1/10, n/30. On June 3 the customer returned $100 of the goods. How much should the seller expect to receive if the buyer pays on June 8 ?	Answer: $693 ($800 - $100 = $700 - (1% x $700)
When the terms of a sale are FOB________, Ownership of goods will transfer to the customer at the customer's dock.	DESTINATION
The seller is responsible for the costs of shipping its goods to the buyer when the terms of the sale are FOB ?	DESTINATION
The buyer is responsible for the costs of the shipping when goods are sold with the terms FOB ?	SHIPPING POINT
When the Allowance for Doubtful Accounts appears on a company's financial statements, its balance will be a________balance.	CREDIT

Resource summary

	Created by Mar1ana_V almost 10 years ago