111. Sales discounts and allowances include: A. allowances for unsatisfactory merchandise.B. discounts for prompt payment.C. allowances for satisfactory merchandise.D. interest charges for late...

111. Sales discounts and allowances include:

A. allowances for unsatisfactory merchandise.
B. discounts for prompt payment.
C. allowances for satisfactory merchandise.
D. interest charges for late payment.
E. choices a and b.

112. When customers return goods for cash refunds or, if the customer has not yet paid, for cancellation of the customer’s obligation to pay, the firm records a sales

A. allowance.
B. return.
C. discount.
D. credit.
E. debit.

113. Accrual accounting requires frequent, ongoing changes in estimates. Which of the following is/are true?

A. As time passes and conditions change, new information becomes available that causes management to change the estimates required to apply accounting principles.

B. Firms do not recalculate revenues and expenses of previous periods to incorporate new information involving estimates.
C. Changes in estimates do not always relate to recurring accrual accounting measurements.
D. Examples of changes in estimates include the amount of uncollectible accounts and the useful lives of depreciable assets.
E. all of the above.

114. Using the information in the following tables, determine the amount of revenue and expense reported in years 1-4 and the totals reported for all 4 years under both the percentage-of-completion method and the installment method.