1) Harry's Hardware estimates that approximately $1.75 out of every $100 of credit sales proves to be uncollectible. Barber calculates Bad Debts Expense using the __________.

Question 12 options:

income statement approach

direct write-off method

balance sheet approach

aging the Accounts Receivable approach

2) After aging the Accounts Receivable, it is estimated that $2,450 will not be collected, and the Allowance account has an existing debit balance of $300. If Accounts Receivable is $107,000, the net receivables would be __________.

Question 14 options:

$107,000

$106,900

$104,550

$104,250

3) Town and Country Saddle learns the account receivable for a customer is uncollectible. The journal entry under the allowance method to write-off an account is to __________.

Question 5 options:

debit Allowance for Doubtful Accounts; credit Accounts Receivable

debit Sales; credit Allowance for Doubtful Accounts

debit Bad Debts Expense; credit Accounts Receivable

debit Allowance for Doubtful Accounts; credit Bad Debts Expense

4) The journal entry to write off an account judged to be uncollectible under the allowance would include a debit to __________.

Question 4 options:

Sales

Accounts Receivable

Allowance for Doubtful Accounts

Bad Debts Expense

5) A company receives a letter from a customer named Mary stating that she is bankrupt. The entry to write off her balance of $1,250 would be __________.

Question 1 options:

Allowance for Doubtful Accounts1,250Accounts Receivable/Mary1,250

Accounts Receivable/Mary1,250Bad Debt Expense1,250

Bad Debt Expense1,250Allowance for Doubtful Accounts1,250

none of the above