Reference no: EM132816459

Problem 1: Retailers often add a financing charge to a customer's accounts receivable balance

a. if the customer fails to purchase additional merchandise.

b. if the account is not paid within five days.

c. if the account is not paid within a specified period of time.

d. if the customer pays more than the required amount.

Problem 2: Allowance for Doubtful Accounts on the balance sheet

a. increases the carrying amount of accounts receivable.

b. appears under the heading "Current Liabilities."

c. is offset against total current assets.

d. decreases gross accounts receivable.

Problem 3: Reversing entries are useful

a. whenever correcting entries are prepared.

b. whenever adjusting entries are prepared.

c. only when accruals are journalized in the current period.

d. only when accruals have been journalized in the previous period.