Question

Question 17 2.5 pts

Aging Accounts Receivable measures:

months a bill has been due but not paid.

sales for the year.

All of these answers are correct.

days a bill has been due but not paid.

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Question 18 2.5 pts

Ohio Company uses the Allowance for Doubtful Accounts Method. When Ohio writes off an uncollectible account, there is:

an increase in Accounts Receivable.

None of these answers is correct.

an increase in the Allowance Account.

a decrease in Accounts Receivable.

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Question 19 2.5 pts

After having written off a customer under the direct write-off method, the account will be reopened when the customer:

sends the full amount to pay off the account.

sends any amount to pay on their account.

None of the above

pays the collection bureau.

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Question 20 2.5 pts

The two methods of accounting for uncollectible receivables are the direct write-off method and the:

cash method.

interest method.

allowance method.

equity method.

Answer 1

Question 17 2.5 pts

Aging Accounts Receivable measures:

So answer is d) days a bill has been due but not paid.

Question 18 2.5 pts

Ohio Company uses the Allowance for Doubtful Accounts Method. When Ohio writes off an uncollectible account, there is:

So answer is d) a decrease in Accounts Receivable.

Question 19 2.5 pts

After having written off a customer under the direct write-off method, the account will be reopened when the customer:

So answer is b) sends any amount to pay on their account.

Question 20 2.5 pts

The two methods of accounting for uncollectible receivables are the direct write-off method and the:

So answer is c) Allowance method