Question 1 For M Ltd the general journal entry for a sale of $3300, including GST, paid for by the customer with a bank issued credit card, is which of the following? a. Debit bank $3300; credit sales $3000; credit GST collected $300 b. Debit bank $3000; debit GST collected $300; credit sales $3300 c. Debit bank $3300; credit sales $3300 d. Debit accounts receivable $3300; credit sales $3000; credit GST collected $300 Question 2 If a 60-day bills receivable was written on 15 February 2013 the maturity date is: a. 16 April 2013. b. 15 April 2013. c. 14 April 2013. d. 13 April 2013. Question 3 In relation to the direct write-off method of accounting for bad debts, it is not true that: a. bad debts are charged as an expense at the time an account is determined to be uncollectable. b. the entry to write off bad debts is debit bad debts expense, debit GST collected, credit accounts receivable. c. there is no contra asset account for estimated doubtful debts. d. bad debts expense is recorded in the same period in which its related sales revenue is included as income. Question 4 Cartoon Capers recorded sales of $210 000 during the year (net of GST). Of these, 30% were on credit. Bad debts have averaged 1% of credit sales. The entry to estimate bad debt expense for the year is which of the following? $ $ a. Bad debts expense 945 Allowance for doubtful debts 945 b. Bad debts expense 3150 Allowance for doubtful debts 3150 c. Bad debts expense 945 Accounts receivable 945 d. Bad debts expense 3150 Accounts receivable 3150 Question 5 Which statement is not true in relation to bad debts recovered? a. The accounts receivable should be re-established to maintain a complete history of the customer's activity and restore their credit rating. b. The entry to reinstate the accounts receivable is debit accounts receivable and credit bad debts recovered. c. The entry made following reinstatement of the account receivable to record the recovery is debit bad debts recovered and credit accounts receivable. d. The recovery is recorded by effectively reversing the entry originally made to write off the receivable.