Solved

For Each Item Identify the Best Description You May Use

Question 85

Matching

For each item identify the best description You may use each choice more than once or not at all.

Premises:

Responses:

Sales returns

Occurs when a customer brings back merchandise for a refund

Accounts receivable

Uses multiple bad debt rates

Cash discounts

Decreases accounts receivable

Net realizable value

Deduction, other than returns, to compute net realizable value

Aging schedule

Estimated cash value

Arises from normal credit sales transactions with customers

Premises:

Sales returns

Accounts receivable

Cash discounts

Net realizable value

Aging schedule

Responses:

Occurs when a customer brings back merchandise for a refund

Uses multiple bad debt rates

Decreases accounts receivable

Deduction, other than returns, to compute net realizable value

Estimated cash value

Arises from normal credit sales transactions with customers

Correct Answer:

Premises:

Responses:

Occurs when a customer brings back merchandise for a refund

Uses multiple bad debt rates

Decreases accounts receivable

Deduction, other than returns, to compute net realizable value

Estimated cash value

Arises from normal credit sales transactions with customers