For Each of the Following Accounts, Indicate Whether It Is

question 137

Multiple Choice

For each of the following accounts, indicate whether it is a balance sheet account or an income statement account.
-Cash

• A)Balance sheet account
• B)Income statement account

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Definitions:

Sales Returns

Transactions where customers return previously purchased merchandise, resulting in a refund or credit.

Bad Debt Expense

An expense recorded to account for receivables that are not expected to be collected, reflecting credit losses in the financial statements.

Accounts Receivable

Outstanding payments from customers for goods or services a company has already delivered.

Average Collection Period

The average number of days it takes for a business to receive payments from its customers for invoices issued, indicative of the effectiveness of a company's credit and collection policies.