Stores Such as Costco and Sam's Club Require an Annual

question 39

Multiple Choice

Stores such as Costco and Sam's Club require an annual membership before you can shop there. This is a form of

• A)two-part pricing.
• B)price gouging.
• C)tie-in sales.
• D)anti-competitive behavior.

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Definitions:

Allowance Account

A contra-asset account used to record adjustments to accounts receivable, reflecting the amounts expected not to be collected.

Uncollectible

Refers to accounts receivable that are considered to be uncollectable from debtors due to their inability to pay.

Credited

A term used in accounting to denote an increase in liabilities or equity accounts, or a decrease in assets or expense accounts.

Financial Assets

Assets that derive value from a contractual claim, such as cash, stocks, bonds, and bank deposits.