ter, is the amount of sales disc time the collection of the account is CE QUESTI
ID: 2566248 • Letter: T
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ter, is the amount of sales disc time the collection of the account is CE QUESTION S Sales discounts with terms /10, n/30 mean: a. 10 percent discount for payment within 30 days 1. b, 2 percent discount for payment within 10 days, or the full amount (less returns 30 days allowances of c. Two-tenths of a percent discount for payment within 30 days. d. None of the above. sales total $300.000, one-half of which were credit sales. Sales returns and al of 3 percent. What is 2. Gross sales total $15,000 5,00to the credit sales, sales discounts of 2 percent were taken on all of the and credit card sales of S100,000 were subject to a credit card discount sales, and credit c c. $279,300 d. $240,000 the dollar amount of net sales? a. $227,000 the amount of sales returns and allowances. At the redi canddiscount from 3 percent to 2 percent. What effoe b. $229,800 3. A company has been successful in reducing time, a credit card company reduced the c c. Net sales will decrease. d. Either (b) or (c). will these changes have on the company's net sales, all other things equal? a. Net sales will not change. b. Net sales will increase. 4. When a company using the allowance method writes off a specific customer's S100,000 receivable from the accounting system, which of the following statements are true? I. Total stockholders' equity remains the same. 2. Total assets remain the same. 3. Total expenses remain the same c. I and 2 b. 1 and 3 5. You have determined that Company X estimates bad debt expense with an aging of accounts receiv. . d. 1, 2, and 3 able schedule. Company X's estimate of uncollectible receivables resulting from the aging analysis equals $250. The beginning balance in the allowance for doubtful accounts was $220. Write-offs of bad debts during the period were $180. What amount would be recorded as bad debt expense for the current period? a. $180 b. $250 c. $210 d. $220 6. Upon review of the most recent bank statement, you discover that you recently received an "insuf- ficient funds check" from a customer. Which of the following describes the actions to be taken when preparing your bank reconciliation? Balance per Books a. No change b. Decrease Balance per Bank Statement Decrease Increase No change Decrease Decrease d. Increase 7. Which of the following is not a step toward effective internal control over cash? a. Require signatures from a manager and one financial officer on all checks. b. Require that cash be deposited daily at the bank. c. Require that the person responsible for removing the cash from the register have no access to the accounting records. d. All of the above are steps toward effective internal control.Explanation / Answer
Dear student, only one question is allowed at a time. I am answering the first question
1)
The terms 2/10, n/30 means a 2% discount will be allowed on the receivables if the amount is paid within 10 days else full amount will be payable (after sales returns) within 30 days
So, option b is the correct option
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