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A receivable is an amount due from another party.

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Credit sales are recorded by crediting Accounts Receivable.

Sellers allow customers to use credit cards for all of the following reasons except:

A. To speed up receipt of cash from the credit sale.
B. To lessen the risk of extending credit to customers who cannot pay.
C. To avoid having to evaluate a customer's credit standing for each sale.
D. To be able to charge more due to fees and interest.
E. To increase total sales

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A company has sales of $375,000 and its gross profit is $157,500. Its cost of goods sold equals:

A. $532500
B. $157500
C. $(217,000).
D. $217500
E. $375000

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A company had sales of $350,000 and cost of goods sold of $200,000. Its gross profit equals $150,000.

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