Which of the following is not true about the Allowance for Doubtful Accounts?

Winkler Company borrows $85,000 and pledges its receivables as security. The journal entry to record this transaction would be:

MacKenzie Company sold $300 of merchandise to a customer who used a Regional Bank credit card. Regional Bank deducts a 1.5% service charge for sales on its credit cards and credits MacKenzie’s account immediately when sales are made. The journal entry to record this sale transaction would be:

A bank reconciliation explains any differences between the balance of a checking account on the depositor’s records and the balance reported on the bank statement.

The three parties involved with a check are:

The acid-test ratio differs from the current ratio in that:

Winkler Company borrows $85,000 and pledges its receivables as security. The journal entry to record this transaction would be:

Great Falls Co.’s bank reconciliation as of February 28 is shown below.           Bank balance $ 37,643 Book balance $ 38,153 + Deposit in transit   2,950 Note collection   +745 – Outstanding checks   -1,730 Check printing   -35 Adjusted bank balance $ 38,863 Adjusted book balance $ 38,863 One of the adjusting journal entries that Great Falls must record as a result of the bank reconciliation includes:

MacKenzie Company sold $300 of merchandise to a customer who used a Regional Bank credit card. Regional Bank deducts a 1.5% service charge for sales on its credit cards and credits MacKenzie’s account immediately when sales are made. The journal entry to record this sale transaction would be:

A company factored $30,000 of its accounts receivable and was charged a 2% factoring fee. The journal entry to record this transaction would include a debit to Cash of $30,000, a debit to Factoring Fee Expense of $600, and credit to Accounts Receivable of $30,600.