QUESTION 10Match the term on the left to the appropriate classification or description on the right.v Allowance for doubtful accountsA. Discounts for early payment of A/R, recorded as contra-revenuesv Net accounts receivableB. An account that the firm credits when it records bad debtv Sales discountsexpensev Write-offs of A/RC. Entries that reduce gross accounts receivableD. Gross accounts receivable minus Allowance for doubtfulaccounts

In this question, we are required to match the terms given in the left side with the description…

QUESTION 10 Match the term on the left to the appropriate classification or description on the right. Allowance for doubtful accounts A. Discounts for early payment of A/R, recorded as contra- revenues Net accounts receivable B. An account that the firm credits when it records bad debt Sales discounts expense C. Entries that reduce gross accounts receivable Write-offs of A/R D. Gross accounts receivable minus Allowance for doubtful accounts

QUESTION 10 Match the term on the left to the appropriate classification or description on the right. Allowance for doubtful accounts A. Discounts for early payment of A/R, recorded as contra- revenues Net accounts receivable B. An account that the firm credits when it records bad debt Sales discounts expense C. Entries that reduce gross accounts receivable Write-offs of A/R D. Gross accounts receivable minus Allowance for doubtful accounts

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Q 26 Question 26 Assuming that the Rector Company uses the Balance Sheet Approach to estimate bad debt expense. Based on aging of accounts receivable management estimates that the desired balance in the allowance for uncollectible accounts should be $18,000. The balance in the allowance for uncollectible accounts before the adjusting entry is made is $1,000 CREDIT balance. The entry to record bad debt expense would be: Select one: a. Dr. Allowance for Uncollectible Accounts 17,000 and Cr. Accounts Receivable 17,000 b. Bad Debt Expense 17,000 and Cr. Allowance for Uncollectible Accounts 17,000 c. Dr. Allowance for Uncollectible Accounts 18,000 and Cr. Accounts Receivable 18,000 d. Dr. Bad Debt Expense 18,000 and Cr. Allowance for Uncollectible Accounts 18,000
16 In “Percentage of accounts receivables method”, the uncollectable accounts receivables percentage is estimated based on ____________________. a. Past experience b. None of the given options c. The impact by current conditions such as economic trends and customer difficulties. d. Both past experience and the impact by current conditions such as economic trends and customer difficulties
6. Which method of estimating uncollectible accounts does not take the previous balance in the allowance account in to consideration? a. Percentage of account receivable method b. All the options c. Account receivable aging method d. Percentage of sales method
1. Which of the following accounts is used only with the allowance method of accounting for uncollectible accounts receivable? Accounts Receivable Bad Debt Expense Allowance for Doubtful Accounts Cash 2. Which method of accounting for uncollectible accounts receivable uses an estimate based on a percent of sales? Direct write-off method Allowance method Both the direct write-off and allowance methods None of these choices are correct.
8) The Allowance Method for bad debts:A) Should be used if uncollectible accounts have a material effect on the company's financial statements used by investors and creditorsB) Complies with GAAPC) Estimates bad debt expense and establishes an allowance or reserve for uncollectibleD) All of the choices are correct Group of answer choices A B C D
7. Which of the following statements regarding the gross and net methods for trade accounts payable is not true? a. the net method overstates accounts payable at the end of the accounting periodb. the net method highlights management inefficiency because purchase discounts lost arerecorded whenever an invoice is paid after the cash discount period has expiredc. the gross method is more widely used in practiced. the net method more accurately measures liquidity
Part (a) Debit allowance for doubtful accounts $16,508 credit Bad Debt expense $16,508.
A6 What are the advantages and disadvantages of using the following Allowance for Expected Credit Losses (AECL) estimates? 1) AECL based of 3rd party credit ratings and Aging of accounts receivab 2) AECL based on Customer Response Score (CR 3) AECL based on write-off history and regionS)le