Generally accepted accounting principles do not normally allow the use of the direct write-off method of accounting for uncollectible accounts.TrueFalse

GAAp: Generally accepted accounting principles. Two methods for writing off of bad debts are:…

Answered: Generally accepted accounting…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter16: Accounting For Accounts Receivable

Section: Chapter Questions

Problem 5TF: Each time an account is written off under the direct write-off method, Bad Debt Expense is debited.

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Similar questions

Which method delays recognition of bad debt until the specific customer accounts receivable is identified? A. income statement method B. balance sheet method C. direct write-off method D. allowance method
Each time an account is written off under the direct write-off method, Bad Debt Expense is debited.
what basic accounting principle is the basis for criticizing the direct charge off method for recording uncollectible accounts?
The preferred method of accounting for uncollectible accounts is ? A) net realizable method. B) actual method. C) allowance method. D) direct write-off method.
What are the advantages of using the allowance method in accounting for uncollectible accounts as compared to the direct write-off method? (please explain in details)
When a company uses the allowance method of accounting for uncollectible receivables, the entry to reinstate a previously written off account would include a a. debit to Allowance for Doubtful Accounts b. debit to Bad Debt Expense c. credit to Allowance for Doubtful Accounts d. credit to Bad Debt Expense
Which one of the following is not an accounting problem (issue) associated with accounts receivable? Group of answer choices Recognizing accounts receivable Depreciating accounts receivable Reporting accounts receivable Relieving accounts receivable
Which of the following is a limitation of the direct write-off method of accounting for uncollectibles? a. The direct write-off method overstates assets on the balance sheet. b. The direct write-off method does not match expenses against revenue very well. c. The direct write-off method does not set up an allowance for uncollectibles. d. All of the above
If the allowance method of accounting for uncollectible receivables is used, what general ledger account is credited to write off a customer's account as uncollectible? Accounts Receivable Allowance for Doubtful Accounts Interest Expense Uncollectible Accounts Expense
Which of the following is a limitation of the direct write-off method of accounting for uncollectible? The direct write-off method overstates assets on the balance sheet. The direct write-off method does not match expenses against revenue very well. The direct write-off method does not set up an allowance for uncollectible. All of the above
Using the allowance method, the entry to record a write-off of accounts receivable will include a. A debit to Bad Debt Expense.b. A debit to Allowance for Uncollectible Accounts. c. No entry because an allowance for uncollectible accounts was established in an earlier period. d. A debit to Service Revenue.
If the allowance method of accounting for uncollectible receivables is used, what general ledger account is credited to write off a customer's account as uncollectible? a.Interest expense b.Allowance for doubtful accounts c.Uncollectible accounts expense d.Accounts receivable

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Generally accepted accounting principles do not normally allow the use of the direct write-off method of accounting for uncollectible accounts. True False