Using the needs approach to determine the amount of coverage looks from the perspective of the

Ellis Company sells merchandise on account for $1,500 to Thomas Company with credit terms of 2/10, n/30. Thomas Company returns $500 of merchandise that was damaged, along with a check to settle the account within the discount period. What entry does Ellis Company make upon receipt of the check?

a. Cash 1,000 .......Accounts Receivable...........1,000 b. Cash 980 Sales Returns and Allowances 520 .......Accounts Receivable...........1,500 c. Cash 980 Sales Returns and Allowances 500 Sales Discounts 20 .......Accounts Receivable...........1,500 d. Cash 1,470 Sales Discounts 30 .......Sales Returns and Allowances 500 .......Accounts Receivable...........1,000

All of the following are true of the liability coverage in a Businessowners policy, EXCEPT:

a. Coverage is provided for products and operations liability. b. Coverage is provided for both bodily injury and property damage from business operations and premises. c. Coverage comes with a series of separate aggregate limits. d. Coverage is provided on a "claims-made" basis.