Which of the following statements is correct about credit period? A. If a customer purchases goods within the credit period, a cash discount will be allowed to the customer B. If a customer settles the payment within the credit period, a cash discount will be allowed to the customer C. It refers to the period in which customers must settle their debts due D. It refers to the period in which customers need to settle one-third of the debts in order to avoid further interests charged

Q: Which of the following is classified as current non-trade receivabke? A. Advances to affiliates B.…

A: Solution : Which of the following is classified as current non-trade receivable? A. Advances to…

Q: Identify which one of the following is a document issued by an individual to his or her bank,…

A: Instrument issued by the pay for operating the payment and receiving settlement. There are many…

Q: If a customer pays with a credit card and the service has been provided, which of the following…

A: When a customer pays at a shop by Credit card, there incur Credit Card Expenses. The company of the…

Q: When a company makes a sale and accepts a credit card payment from a customer, the company: Multiple…

A: Increase in debits should be debited and increase in expenses should be debited. Increase in…

Q: A credit balance to a client's accounts payable account representing right to receive payment for…

A: Liabilities are of two types current and noncurrent liabilities. Current liabilities are to be…

Q: o meet immediate cash needs of the business b. To create an additional guarantee of collection c. To…

A: Factoring is a kind of financial transaction whereby the owner of the firm sells their receivables…

Q: Which one of the following statements about trade discount is true? It is recorded in books of…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: When should revenue from the sale of merchandise normally be recognized? (Assume the company reports…

A: The revenue should be recognized in the following conditions. 1.When the amount realized or received…

Q: Which one of the following best defines the term credit scoring?  A.  Categorizing customers…

A: The statistical tool used to analyze the performance by lenders and financial institutions so as to…

Q: From pages 5-1 and 5-3 of the LVN, match the term with its explanation. Put the answers in the right…

A: The pages attached provide us with an understanding of how credit transactions are recorded and how…

Q: Indicate whether each of the following statements is true or false. a) Loaning cash to another…

A: Cash flow from operating activities: In this part of the cash flow statement, cash is indicates the…

Q: When a customer eventually pays for items that have been purchased on credit, the transaction will…

A: Here, Customer is our Debtor.  Company usually sales its goods on credit and that customer who…

Q: a. At the stage of recording a credit sale transaction, please state the potential misstatements 3)…

A: “Since you have asked multiple sub-parts, we will solve the first three sub-parts for you. If you…

Q: When a customer is delinquent on paying a notes receivable, your company has the option to continue…

A: Here in the questions, there are multiple sub-parts so we are doing the first three sub-parts  If…

Q: Accounts receivable is the amount payable by the customer to the company for the goods delivered and…

A: Bad debts are considered to be estimated based on 2.5% of total credit sales. Therefore, the bad…

Q: either the word "debit" or the word "credit." A. The Bank account normally has a B. A revenue…

A: Debits and credits seem to be the opposite aspects of an accounting journal entry. Whenever accrual…

Q: Under what circumstances would accounts receivable be posted as a credit balance : A. When the…

A: The different accounts in the business have different balance as debit and credit.

Q: if a customer owes interest on a bill, accounts receivable is debited, and interest expense is…

A: Accrued interest receivable: the accrued interest receivable means the interest income of a company…

Q: plain why it is important for a company to keep track of how much money in discounts is given out?…

A: . Percent of cash discount since 3/15, n/45 is the credit term between the seller and buyer which…

Q: Which one of the following would not appear on a bank statement for a chequing account? a.Deposits…

A: Deposits in transit: Deposit in transit means the money received by a company and recorded in the…

Q: If a credit marked as "Upon receipt by the beneficiary of notice from the issuing bank that a draft…

A: The question is based on the banking term and arrangement of credit under different conditions.…

Q: Explain the following terms:   a. Dishonoured cheques b. Credit transfer c. Standing orders d.…

A: Note: Since you have posted a question with multiple subparts only the first three sub-parts have…

Q: If a company sells its accounts receivables to a factor O a. there is a gain on the sale of the…

A: Solution: Factoring is a financial transaction thru which business sells its accounts receivables at…

Q: A credit balance to a client's accounts payable account representing right to receive payment for…

A:

Q: When a customer returns merchandise previously purchased on credit, the entry for the seller to…

A: Journal entry:- Customer Ac Dr to Sales A/C

Q: When the customer pays the money to the company after the discount period, which one of the…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: When a customer pays in advance for products or services, which of the following accounts is…

A: We have the following question: When a customer pays in advance for products or services, which of…

Q: When recording credit card or debit card sales using the net method, a. cash received equals sales.…

A: When a client or customer pays the payment with credit card or debit card usually a card processing…

Q: Which of the following transactions is credited? A) WHEN CHARGED B) PURCHASE OF COMMERCIAL GOODS…

A: Credit transaction: Any transaction by the terms of which the repayment of money loaned, or loan…

Q: ovide example of accounting treatment for transactions related to loan in two situations as…

A: Loan : It is the amount which is borrowed by the individual to fulfil his/her needs. When amount…

Q: What is the amount to be collected by the business from customer who receive the product or services…

A: When a corporation purchases product on credit that must be paid back during a short amount of your…

Q: Credit sales are recorded by crediting an account receivable for specific customer. True or false?

A: Lets understand the meaning of credit sales. Credit sales refers to transferring ownership of goods…

Q: When should revenue from the sale of merchandise normally be recognized? A)When the customer takes…

A: Revenue recognition concept says that when all the risk and reward has been passed on to the buyer…

Q: Which of the following journal entry is correct for the transactions of goods returned by a…

A: When we make a sales to customer, we pass the following entry:- Trade receivables  Dr           To…

Q: When a company decides to extend credit to consumers, it is making an investment decision in: a.…

A: A company often decides to extend credit to consumers. The decision is made on the logic that credit…

Q: The accounting treatment of Discount on bill discounted is: a. A current liability b. A current…

A: The earnings which are earned but not received are the accrued revenue for the business. The…

Q: What is the main purpose of factoring in accounts receivables? a. To meet immediate cash needs of…

A: Account receivable means the amount due from customer whom we sold the goods on credit. Factoring…

Q: Which of the following is the primary reason why a company sells it receivables to another entity?…

A: Accounts receivable represents the amount that is due to be received by the customer of the company.…

Q: Average collection period measures * the average time taken by debtors to make payment on credit…

A: Average collection period gauges the average time taken by all the debtors of the company to payback…

Q: A cash discount on purchases should be debited to ______________ Select one: A. a revenue account…

A: The answer is provided as follows:

Q: The type of cash discount where the discount period is counted from the date of invoice is

A: In the given question we need to fill in the blank with the correct option

Q: Which of the following is indicative of discounts received from a supplier on account of early…

A: solution concept Quantity discount : discount given when large quantity is purchased Value discount…

Q: t is an amount owed to suppliers for goods purchased or services performed on credit. a. Outstanding…

A: Account payables means the amount owed by business to outsider for the goods received and services…

Q: Several accounts are listed below a. Purchases Returns and Allowances b. Sales Discounts c. Wages…

A:

Q: If a customer pays with a credit card and the service has been provided, which of the following…

A: Credit card is like a physical card which are used as a postpaid, in which customer or card holder…

Q: Which of the following is not normally increased by a cash inflow transaction?   a) Advances from…

A: Solution: "Deposits on returnable containers"  is not normally increased by a cash inflow…

Q: Which of the following would not result in a reduction of the amount invoiced to a customer when a…

A: The discount decreases the amount of payment to be paid to creditors or to be received from…