Match the descriptions below with the correct answer, using the letter codes shown in the table below.
Question:
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.
Tracks the actual physical flow for each inventory item available for sale.
The economic life of a business should be divided into
The net amount expected to be received in cash from receivables
An expense considered to be a normal and necessary risk of doing business on credit basis
Shipping terms that would typically mean that the seller has to pay the freight charges
Generally acceptable for financial reporting purposes.
would result in a $30 discount for early payment of a $1,000 purchase.
Expert Answer:
1 Credit terms that allow 2 discount if paid within the first 10 days of the nex... View the full answer
