Customer A. Smith owed Stonebridge Electronics $325. On April 27, 2016, Stonebridge determined this account receivable to be uncollectible and wrote off the account. The company uses the direct write-off method. On July 15, 2016, Stonebridge received a check for $325 from the customer. How should the July 15, 2016 transaction be recorded?

Group of answer choices

A business maintains subsidiary accounts for each of its customers. On May 15, the business sells services on account: $2,500 to customer J. Simmons; $4,100 to customer A. Jones; and $1,300 to customer J. Williams. Which journal entry is needed to record this sales transaction?

Group of answer choices

May 15	Accounts Receivable	7,900
	Service Revenue		7,900

May 15	Accounts Receivable - J. Simmons	2,500
	Accounts Receivable - A. Jones	4,100
	Accounts Receivable - J. Williams	1,300
	Service Revenue		7,900

May 15	Service Revenue	7,900
	Accounts Receivable		7,900

May 15	Accounts Receivable Control	7,900
	Sales Revenue		7,900
May 15	Accounts Receivable - J. Simmons	2,500
	Accounts Receivable - A. Jones	4,100
	Accounts Receivable - J. Williams	1,300
	Accounts Receivable - Control		7,900

July 15	Accounts Receivable - A. Smith	325
	Bad Debt Revenue		325

July 15	Cash	325
	Bad Debt Expense		325

July 15	Accounts Receivable - A. Smith	325
	Bad Debt Expense		325
July 15	Cash	325
	Accounts Receivable - A. Smith		325

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Question 152.5 pts

Which of the following is the correct formula to calculate inventory turnover?

Group of answer choices

Inventory turnover = Cost of goods sold / Average merchandise inventory

Inventory turnover = Cost of goods sold Average merchandise inventory

Inventory turnover = Cost of goods sold + Average merchandise inventory

Inventory turnover = Cost of goods sold - Average merchandise inventory

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Question 162.5 pts

The ending merchandise inventory for the current year is overstated by $25,000. What effect will this error have on the following year's net income?

Group of answer choices

The net income will be overstated by $50,000.

The net income will be overstated by $25,000.

The net income will be understated by $25,000.

The net income will be understated by $50,000.

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Question 172.5 pts

Which of the following is added to operating income to arrive at net income?

Group of answer choices

sales revenue

cost of goods sold

interest revenue

operating expenses

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Question 182.5 pts

The goal of reporting realistic figures and never overstating assets or net income applies to the ________.

Group of answer choices

conservatism principle

materiality concept

disclosure principle

consistency principle

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Question 192.5 pts

In a good internal control system, which of the following sets of documents is required for proper approval of a payment to a supplier?

Group of answer choices

a journal entry, a supplier invoice, and a description of the goods being purchased

a receiving report, an invoice, and a purchase order

a purchase order, a journal entry, and a price catalog

a supplier invoice, a bill of lading, and the supplier's financial statements