Reference no: EM132902410

Problem 1: Scotch Services received a credit memorandum from the bank. During the bank reconciliation they should

A) increase their cash account on the company's books.

B) decrease their cash account on the company's books.

C) increase the ending cash balance on the bank statement.

D) decrease the ending cash balance on the bank statement.

Problem 2: What type of transaction gives rise to accounts receivable?

A) purchases for cash

B) sales for cash

C) sales on account

D) purchases on account

Problem 3: Estimates for uncollectible receivables are recoded as a _____ in _____ account?

A) debit, Allowance for doubtful accounts

B) debit, Accounts Receivable

C) credit, Bad debt expense

D) credit, Allowance for doubtful accounts

Problem 4: An estimate of the length of time the accounts receivable has been outstanding ?

A) aging of receivables

B) days' sales in receivables

C) accounts receivable turnover

D) maturity date

Problem 5: Accounts Receivable less Allowance for doubtful accounts equal?

A) Net realizable value

B) Bad debts already written off

C) Estimate for doubtful accounts

D) Total Accounts receivable