Exam 6: Reporting and Interpreting Sales Revenue, Receivables, and Cash

Which of the following doesn't correctly describe the effect of a journal entry involving the recording of a credit card discount?

A company sells magazines and collects subscription fees prior to the publication and distribution of the magazine.Which of the following correctly describes the impact on the financial statements when cash is received in advance from customers?

Indicate whether each of the accounts listed below normally will have a debit or a credit balance.Record your answer to the left of each account by entering either Dr or Cr. 1. Short-term irvestrnents $\quad$$\quad$$\quad$$\quad$ Cr $\quad$ 6 2. Bad debt experse $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ Dr $\quad$ 2 3. Sales reveruue $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ Dr $\quad$ 7 4. Sales discourts $\quad$$\quad$ $\quad$$\quad$$\quad$$\quad$$\quad$ Cr $\quad$ 5 5. Unearned reverue $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ Dr $\quad$ 4 6. Allowance for doubtful accourts $\quad$$\quad$ Dr $\quad$ 8 7. Sales retuns ard allowarces $\quad$$\quad$$\quad$ Cr $\quad$ 3 8. Notes receivable $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ Dr $\quad$ 1