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Estimate uncollectible receivables 1) The Uncollectible Account Expense account is class

 Estimate uncollectible receivables

1) The Uncollectible Account Expense account is classified:

A) as a contra-asset account

B) as part of cost of goods sold

C) as the cost to the seller of extending credit

D) deducted from Accounts Receivable account on the balance sheet

2) The two accepted methods of recording bad debts are the:

A) allowance method and the aging method

B) receivables method and the aging method

C) allowance method and the direct write-off method

D) direct write-off method and the percentage-of-sales method

3) What category of account is the Allowance for Uncollectible Accounts account?

A) contra-asset account

B) contra-revenue account

C) contra-expense account

D) expense account

4) Under the allowance method, the entry to record the bad debts estimate includes a:

A) debit to Accounts Receivable

B) credit to Accounts Receivable

C) debit to Allowance for Uncollectible Accounts

D) debit to Uncollectible-Account Expense

5) Under the direct write-off method, the entry to record the estimated bad debts:

A) is not done

B) includes a credit to Allowance for Uncollectible Accounts

C) includes a debit to Allowance for Uncollectible Accounts

D) includes a debit to Uncollectible-Account Expense

6) The account that shows the amount of accounts receivable that the business does not expect to collect is:

A) Allowance for Uncollectible Accounts

B) net Accounts Receivable

C) Sales Returns and Allowances

D) Sales Discounts

7) Net accounts receivable is calculated as:

A) sales less sales returns and allowances

B) accounts receivable less uncollectible-account expense

C) accounts receivable less allowance for uncollectible accounts

D) accounts receivable plus allowance for uncollectible accounts

8) Which of the following accounts is a contra-account to Accounts Receivable?

A) Sales Discounts

B) Sales Returns and Allowances

C) Allowance for Uncollectible Accounts

D) Uncollectible-Account Expense

9) Under the allowance method for estimating uncollectible accounts, the entry to write off an account:

A) reduces total assets

B) reduces net income

C) has no effect on total assets

D) increases net income

10) Under the allowance method for estimating uncollectible accounts, the entry to record the estimated bad debts:

A) increases total assets

B) reduces net income

C) has no effect on total assets

Dec 09 2019 Read more Less More

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