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

Question

Quizplus · Accepted Answer

The sales and collection cycle includes the following five classes of transactions: 
1) Sales 
2) Cash receipts 
3) Sales returns and allowances 
4) Write-off of uncollectible accounts (bad debt expense) 
5) Recovery of bad debts. 
Depreciation expense-store equipment is not a class of transaction included in the sales and collection cycle. It belongs to the property, plant, and equipment cycle.

Which One of the Following Is NOT One of the Five