Which transaction and amount in sales and collections transactions is ultimately included in balance sheet accounts?
A) accounts receivable
B) cash
C) provision for doubtful debts
D) all of the above

Question

Quizplus · Accepted Answer

All three transactions (sales, collections, and provisions for doubtful debts) ultimately impact balance sheet accounts. Sales impact accounts receivable, collections impact cash, and provisions for doubtful debts impact the allowance for doubtful accounts, which is a contra asset account that reduces accounts receivable. Therefore, all transactions ultimately impact the balance sheet.

Which Transaction and Amount in Sales and Collections Transactions Is