Accounts Receivable

Which of the following transactions would take place in the general journal when a customer pays for a good or service which has been invoiced?

• A cash account is debited; a sales account is credited

• Bad debts account is debited; sales return account is credited

• A cash account is debited; accounts receivable account is credited

• Accounts receivable account is debited; cash account is credited

Which of the following is a term used when a credit sale is returned by the customer?

• credit limit

• sales allowance

• sales return

• invoice

Which of the following accounts defines the general ledger account which contains the grand totals of individual subsidiary journal transactions?

• Sales account

• Control Account

• Allowance Account

• Accounts receivable account

Which of the following terms defines when a customer buys a good or service on credit and agrees to pay at a later date?

• Subsidiary ledger

• operating activities

• Accounts receivable

• Direct write- off approach

Which of the following transactions would take place in the journal when a customer buys a good or service on credit?

• Sales account is debited; cash account is credited

• Accounts receivable account is debited; cash account is credited

• Accounts receivable account is debited; sales return account is credited

• Accounts receivable account is debited; sales account is credited

Which of the following terms describes a financial statement which shows how the balance sheet and income statement changes affect the flow of cash?

• Income statement

• Invoice statement

• Balance Statement

• Cash Flow Statement

Which of the following is a report which lists all amounts owed by customers?

• Schedule of accounts payable

• Schedule of accounts receivable

• Schedule of allowances

• Schedule of bad debts

Which of the following is a balance sheet account which reduces the reported amount of accounts receivable?

• Allowance for doubtful accounts

• Allowance for tax credits

• Schedule of bad debts

• Schedule of accounts receivable

Which of the following transactions would take place when an account becomes uncollectible and is written off under the allowance method?

• Bad debts account is debited; accounts receivable is credited

• Accounts receivable account is debited; sales return account is credited

• Accounts receivable account is debited; an allowance for doubtful accounts is credited

• Allowance of doubtful accounts is debited; accounts receivable is credited

Which of the following transactions would take place in the journal when using the direct write-off approach for an uncollectible account?

• Sales account is debited; cash account is credited

• Sales return account is debited; cash account is credited

• Accounts receivable account is debited; sales return account is credited

• Bad debts expense account is debited; accounts receivable is credited