Whenacompanyreceivesacashdividendonatradingsecurity:
A. revenueisdecreased
B. assetsaredecreased
C. revenueisincreased
D. liabilitiesaredecreased
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Whichaccountshowstheamountofaccountsreceivablethatthebusinessdoesnotexpecttocollect?
A. uncollectibleaccountsexpense
B. allowanceforuncollectibleaccounts
C. salesreturnandallowance
D. unearnedaccountsreceivable
Whichmethoddoesnotuseestimates?
A. direct-writeoffmethod
B. percent–of-sales
C. aging-ofreceivablesmethod
D. allowancemethod
Undertheallowancemethod,whenacompanydeterminesthattheywillnotbeabletocollectfromaparticularcustomer,theywilldebit:
A. allowanceforuncollectibleaccounts
B. uncollectible-accountexpense
C. accountsreceivable
D. salesrevenue
Undertheallowancemethod,theentrytowriteoffa$2,600uncollectibleaccountincludesa:
A. debittoallowanceforuncollectibleaccountsfor$2,600
B. credittoallowanceforuncollectibleaccountsfor$2,600
C. credittouncollectible-accountexpensefor$2,600
D. debittoaccountsreceivablefor$2,600
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