Which of the following is not one of the five classes of transactions included in the sales and collection cycle?
A) sales returns and allowances
B) write-off of uncollectible accounts
C) bad debt expense
D) interest income

Question

Quizplus · Accepted Answer

Interest income is not a part of the sales and collection cycle. The five classes of transactions included in the sales and collection cycle are sales, cash receipts, sales returns and allowances, write-off of uncollectible accounts, and bad debt expense. Interest income is a separate transaction related to the investment cycle.

Which of the Following Is Not One of the Five