Tricon Co. sells $10,000 of Its accounts receivables and is charged a 5% factoring fee. It records this sale with a debit to:

The ____ method, also referred to as balance sheet method, uses balance sheet relations to
estimate bad debts-mainly, the relationship between accounts receivable and the allowance account.

accounts receivable
allowance
bad debts
percentage of sales



Tricon Co. sells $10,000 of Its accounts receivables and is charged a 5% factoring fee. It records this sale
with a debit to:

Accounts Receivable for $10,000.
Cash for $10,000.
Cash for $10,500.
Cash for $9,500.
Accounts Receivable for $10,500.
Accounts Receivable for $9,500.


Companies sometimes convert receivables to cash before they are due by selling them or using them as
security for a loan. The reasons that a company may convert receivables before their due date include:
(Check all that apply.)

to satisfy customer's needs.
to quickly increase profit.
to reduce risk of nonpayment.
to quickly generate cash.


Although U.S. GMP and IFRS have similar rules in recording disposition of receivables, Under U.S. GMP

provision refers to expense. Under IFRS, provision refers to

An asset
A liability
A revenue