1)Under the direct write-off method, what adjusting entry is recorded at the end of the year to account for possible future bad debts?

Multiple Choice

• Debit Allowance for Uncollectible Accounts

• Credit Accounts Receivable

• Debit Bad Debt Expense

• No adjusting entry is recorded

2) A company has the following information:

Total revenues	$860,000
Sales returns and allowances	50,000
Sales discounts	30,000
Ending inventory	100,000

What is the amount of net revenues for the company?

3)Which of the following best describes credit sales?

Multiple Choice

• Sales to customers using credit cards

• Cash sales to customers that are new to the company

• Sales to customers on account

• Sales with a high risk that the customer will return the product

4) A company's adjusting entry for uncollectible accounts at year-end would include a:

Multiple Choice

• Debit to Accounts Receivable.

• Credit to Accounts Receivable.

• Debit to Bad Debt Expense.

• Debit to Allowance for Uncollectible Accounts.