05 QUIZ: SALES AND COLLECTION CYCLE

INSTRUCTIONS: Nos. 1-6, WRITE THE TRANSACTION CORRESPONDING TO THE ENTRIES TO THE T-ACCOUNTS

CASH SALES

1 1 1
4 2 2

ACCOUNTS RECEIVABLE SALES RETURNS AND ALLOWANCES

2 3 3 3
4 4
6 5
6
ALLOWANCE FOR DOUBTFUL ACCOUNTS PROVISION FOR DOUBTFUL ACCOUNTS

6 5 5

7 Choose one (1) of the following accounting

concepts and relate this to our Christian
ANSWER (40%):
life:
1. Each transaction has a corresponding
journal entry
2. All debit entries must eaqual all credit
entries
3. Revenues come hand in hand with
collection to complete a cycle.