Question

Question 21 2.5 pts

The two methods of accounting for uncollectible receivables are the allowance method and the:

interest method.

cost method.

equity method.

direct write-off method.

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Question 22 2.5 pts

In the direct write-off method, writing off an account causes:

a decrease in the Allowance account.

an increase in Accounts Receivable.

an increase in expense.

a decrease in expense.

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Question 23 2.5 pts

Pittsburgh Tours collected $190 on an account that had been directly written off the previous year. The journal entry to record the transaction would include:

a credit to Bad Debts Expense.

a debit to Allowance for Doubtful Accounts.

a credit to Bad Debts Recovered.

a debit to Bad Debts Recovered.

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Question 24 2.5 pts

A company is not able to reasonably estimate its bad debts expense. The method it may use is:

aging method.

income statement method.

direct write-off method.

net realizable value method.

Answer 1

Question 21 2.5 pts

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

So the answer is option c)

Question 22 2.5 pts

In the direct write-off method, writing off an account causes a increase in expense

So the answer is option c)

Question 23 2.5 pts

Pittsburgh Tours collected $ 190 on an account that had been directly written off the previous year. The journal entry to record the transcation would be a credit to bad debts recovered

So the answer is option C)

Question 24 2.5 pts

A company is not able to reasonably estimate its bad expense. The method may use is direct write-off method

So thew answer is option C)