Match the descriptions below with the correct answer, using the letter codes shown in the table below. (8 points)

A. Realizable value

B. Percentage of receivables method

C. 3/10, n/60

D. Bad debt Expense

E. Aging of receivables

F. Allowance method

G. Operating cycle

H. Specific identification method

I. FOB shipping point

J. Time period assumption

K. n/10 EOM

L. Percentage of sales method

M. Permanent accounts

N. 2/10, EOM

O. 2/10, n/30

P. FOB destination

Credit terms that allow 2% discount if paid within the first 10 days of the next month.

Answer 1 Choose... Tracks the actual physical flow for each inventory item available for sale.

Answer 2 Choose... The economic life of a business should be divided into

Answer 3 Choose... The net amount expected to be received in cash from receivables

Answer 4 Choose... An expense considered to be a normal and necessary risk of doing business on credit basis

Answer 5 Choose... Shipping terms that would typically mean that the seller has to pay the freight charges

Answer 6 Choose... Generally acceptable for financial reporting purposes.

Answer 7 Choose... would result in a $30 discount for early payment of a $1,000 purchase