A Company Sells Merchandise on a Deferred Payment Plan,ultimately Receiving

question 109

Multiple Choice

A company sells merchandise on a deferred payment plan,ultimately receiving $5,000 on the account receivable.On the payment date,the company would

• A) credit Accounts Receivable for less than $5,000.
• B) debit Interest Income for the imputed amount.
• C) credit Sales for less than $5,000.
• D) debit the asset account for $5,000.

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Definitions:

High Morale

A state in which employees are motivated, satisfied, and have a positive outlook towards their work and workplace.

Intrinsic Rewards

The personal satisfaction and enjoyment felt after attaining a goal.

Extrinsic Rewards

Benefits and/or recognition received from someone else.