The Net Method of Recording Accounts Receivable Is Rarely Used

question 20

Multiple Choice

The net method of recording accounts receivable is rarely used because it

• A)is less theoretically correct than the gross method.
• B)requires an "Allowance for Sales Discounts" to be reported on the statement of financial position.
• C)has a different effect on the statement of financial position and income statement.
• D)requires more bookkeeping for the additional adjusting entries after the discount period has passed.

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