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NEW QUESTION: 1
An entity offers its customers credit terms of a 2% discount if paid within 10 days or the full balance is due within 30 days2/10, n/30). If some customers take advantage of the cash discount and others do not, which of the following accounts will appear on the income statement if the net method of recording receivables is employed?
Sales Discounts
Sales Discounts Forfeited
A. Yes No
B. No No
C. Yes Yes
D. No Yes
Answer: D
Explanation:
The gross method accounts for receivables at their face amount. If a discount is taken a sales discount is recorded and classified as an offset to sales in the income statement to yield net sales. The net method records receivables net of the applicable discount. If the payment is not received during the discount period, an interest revenue account, such as sales discounts forfeited is credited at the end of the discount period or when the payment is received. Accordingly, the application of the net method requires a sales discount forfeited but not a sales discount account.
NEW QUESTION: 2
How many ATP are required to transform pyruvate into glucose?
A. 0
B. 1
C. 2
D. 3
Answer: D
NEW QUESTION: 3
A midrange customer is considering a competitor's storage system. The customer has a limited budget and needs a system that supports encryption.
Which solution should the sales specialist offer?
A. IBM Storwize V5030
B. IBM Storwize v5010
C. IBM Storwize V5020
D. IBM Storwize v7000
Answer: C
