What credit card sales during the period were

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Problem 1: If Rope Inc. receives $23,825 from credit card collections and has an average rate of 4.7% charged by the credit card company, its credit card sales during the period were:

a. $111,978 b. $50,691 c. $25,000 d. $22,705

Problem 2: If a company uses the direct write-off method of accounting for bad debts,

a. It is applying the matching principle.

b. It will record bad debt expense only when an account is determined to be uncollectible.

c. It will reduce the accounts receivable account at the end of the accounting period for estimated uncollectible accounts.

d. It will report accounts receivable in the balance sheet at their net realizable value.

Reference no: EM132830070

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