If a Company Employs the Net Method of Recording Accounts

question 98

Multiple Choice

If a company employs the net method of recording accounts receivable from customers, then sales discounts forfeited should be reported as ________.

• A) sales discounts forfeited on the balance sheet an item of "other revenue and expense" on the income statement
• B) an item of "other revenue and expense" on the income statement
• C) an increase to sales revenue on the income statement
• D) a deduction from sales revenue on the income statement

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Definitions:

Erythema

Redness of the skin caused by increased blood flow to the capillaries, often a sign of injury or inflammation.

Chlamydia Infection

A common sexually transmitted infection (STI) caused by the bacterium Chlamydia trachomatis, which can lead to serious reproductive and other health problems if left untreated.

Azithromycin (Zithromax)

A macrolide antibiotic used to treat a variety of bacterial infections by inhibiting bacterial protein synthesis.

Ceftriaxone (Rocephin)

A broad-spectrum antibiotic used to treat various types of bacterial infections, especially those caused by bacteria resistant to other antibiotics.