Question 2

Question

Which of the following transactions do not involve cash? (check all that apply)

Collections from customers

Sales on account

Recoveries of cash from accounts previously written-off

Write-offs of Accounts Receivable

Recording Bad Debt expense

1 point
3.
Question 3
A com

Answer 1

For the transactions listed, the ones that do not involve cash are:

1. Sales on account - This transaction represents sales made on credit, meaning no immediate cash is exchanged.
2. Write-offs of Accounts Receivable - When accounts are written off, it means that the company has determined that the amount owed will not be collected, and this process does not involve cash.
3. Recording Bad Debt expense - This entry is an accounting adjustment to recognize that some receivables will not be collected, and it does not involve any cash.

The other transactions do involve cash:

• Collections from customers involve receiving cash.
• Recoveries of cash from accounts previously written-off involve cash being collected again.

So the correct answers are:

• Sales on account
• Write-offs of Accounts Receivable
• Recording Bad Debt expense

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