Which of the Following Is Recorded by a Credit to Accounts

question 107

Multiple Choice

Which of the following is recorded by a credit to Accounts receivable?

• A)Sale of inventory on account.
• B)Estimating the annual allowance for uncollectible accounts.
• C)Estimating annual sales returns.
• D)Write-off of bad debts.

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Definitions:

Financial Statements

Reports that provide an overview of a company's financial condition, including the balance sheet, income statement, and cash flow statement.

Social Security Tax

A tax that funds the Social Security program, which provides benefits for retired workers, disabled individuals, and their dependents.

Fiscal Year-End

The completion of a one-year, or 12-month, accounting period, after which a company will prepare financial statements.

Employee Benefits

Non-wage compensation provided to employees in addition to their normal wages or salaries, including health insurance, pensions, and vacation.