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To determine if sexual equality exists, we must answer the following:

For companies that offer a warranty on the items sold, a company will need to record an estimate of the amount of expenses that may be incurred for honoring that warranty.  Many companies estimate the cost associated with each sale by using their past experience on the percentage of products needing repair and the average cost of repairs.   The two accounts that will be recorded with each sale to cover this potential repair are a debit to which account and a credit to which account?  The account debited should be in the first blank and the credit account should be in the second blank. 

A debenture is an unsecured bond issued without any pledged assets of the company and based on the reputation of the company. 

A contingent liability would include any of the following except which one?

Name one other Contra Account that we discussed this semester other than “Allowance for Doubtful Accounts”

The entry to record depreciation contains a debit to which account?  And a credit to which account?   Debit entry in the first blank and credit entry in the second blank.  

The second entry that I record for a sale in a merchandising company is to record the cost of the sale.  In this entry, what account do I debit? What account do I credit?  Answer the questions in the order that it was asked.  Debit in the first blank, credit in the second blank.  

In using the “Balance Sheet Aging of Accounts Receivables Method” for bad debt allowance, the uncollectable percentage amount applied to aged receivables goes up or down with the age of the receivable. 

The answer to the credit side of the last question is an account which is shown in the Asset Section of the balance sheet but is classified as a ____________ account.  

The entry to record an estimate of bad debt consists of entries to the following accounts:  debit ______________ and credit _______________.