Question 6 Not yet answered Marked out of 1.

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The Allowance for Doubtful Accounts represents:

Select one:

a. Cash set aside to make up for bad debt losses.

b. The amount of uncollectible accounts previously written o .

c. The di erence between total credit sales and cash sales.

d. The di erence between the face value of accounts receivable and the net realizable
value of accounts receivable.

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Question 7 Not yet answered Marked out of 1.00

The income summary account has expenses of $65,000 and revenues of $55,000.
The company had which of the following:

Select one:

a. Net income of $10,000

b. Net income of $120,000

c. Net loss of $10,000

d. Net loss of $120,000

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Question 8 Not yet answered Marked out of 1.00

In a ledger, debit entries cause:

Select one:

a. Increases in owners' equity, decreases in liabilities, and increases in assets.

b. Decreases in liabilities, increases in assets, and decreases in owners' equity.

c. Decreases in assets, decreases in liabilities, and increases in owners' equity.

d. Decreases in assets, increases in liabilities, and increases in owners' equity.

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