1. The expense associated with an uncollectible account is recognized when it has been determined that a customer will not pay the amount owed under the a. reserve method. b. allowance method. c. allocation method. d. direct write-off method. 2. Dude Ranch Circle estimates its uncollectible accounts at 1.5% of its credit sales of $825,000. When adjusting for estimated losses from uncollectible accounts, the debit to Bad Debt Expense is a. $82,500. b. $123,750. c. $12,375. d. $8,250. 3. When making the current period's adjusting entry under the percentage of sales method, the balance in Allowance for Bad Debts is a. doubled. b. ignored. c. divided in half and this amount is used for the adjustment. d. 30% of the amount to be used for the adjustment