1. The aging method of estimating uncollectible accounts method is based on the assumption that the longer an account receivable remains outstanding, the less likely it is to be collected. This statement is

a. True

b. False

2. Ron Company experienced an accounting event that had the following effects on its financial statements.

Which of the following events could have caused these effects?

a. Recognized uncollectible accounts expense under percent of receivables method.

b. Recognized uncollectible accounts expense under the aging method.

c. Recognized uncollectible accounts expense under the percent of revenue method.

d. All of the answers describe events that could have caused the effects shown in the statements model.

3. Under the allowance method the uncollectible accounts expense (i.e. bad debt expense) is

a. estimated and recognized at the end of the accounting period.

b. recognized at the time a customer defaults on their account.

c. estimated and recognized at the time a customer makes a purchase.

d. recognized at the beginning of each accounting period.