Which one of the following is NOT typically included in the sales and collection cycle?
A) Sales returns and allowances
B) Allowance for doubtful debts
C) Bad debt expense
D) Cash credits from the cash payments journal

Question

Quizplus · Accepted Answer

Cash credits from the cash payments journal are typically included in the cash disbursements cycle, not the sales and collection cycle. The sales and collection cycle typically includes the processes of making sales, recording revenue and receivables, managing collections, and dealing with any returns or allowances. B) Allowance for doubtful debts and C) Bad debt expense are both related to managing and accounting for potential credit losses. A) Sales returns and allowances are also a key component of the sales and collection cycle, as they relate to managing customer returns and reducing receivables for goods that were not ultimately sold.

Which One of the Following Is NOT Typically Included in the Sales