Fichas
Accounts Receivable and Bad Debts Expense Quiz
Fichas del conjunto (7)
- 1When a sale is made with the credit terms of 2/10, net 30, the"10" refers to the ______.Discount Period
- 2TRANSACTION: 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) - 3TRANSACTION: 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) - 4When the terms of a sale are FOB________, Ownership of goods will transfer to the customer at the customer's dock.DESTINATION
- 5The seller is responsible for the costs of shipping its goods to the buyer when the terms of the sale are FOB ?DESTINATION
- 6The buyer is responsible for the costs of the shipping when goods are sold with the terms FOB ?SHIPPING POINT
- 7When the Allowance for Doubtful Accounts appears on a company's financial statements, its balance will be a________balance.CREDIT