Buto Buys a Bus Ticket at a Window in the City

question 41

Multiple Choice

Buto buys a bus ticket at a window in the City Bus Depot before checking his backpack and boarding a bus. In this situation, the subject to a bailment is

• A)Buto.
• B)the backpack.
• C)a seat on the bus.
• D)none of the choices.

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Definitions:

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of a company's receivables that might not be collected, reducing the total value of accounts receivable by a corresponding amount.

Credit Sales

Sales made on credit, meaning payment is to be received after the delivery of goods or services.

Credit Card Discount

Fee charged by the credit card company for its services.

Net Sales

The revenue a company makes after subtracting the costs for returns, compensation for damaged or missing items, and any permitted discounts.