Question
1. Under the direct write-off method, bad debt expense is not recorded until the customer's account is determined to be worthless. True 2. _________ estimates
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1. Under the direct write-off method, bad debt expense is not recorded until the customer's account is determined to be worthless.
True
2. _________ estimates the average number of days it takes to collect accounts receivable.
- Days' Sales in Receivables
- Return on sales
- Direct-write off on sales
- Return on investment
a
3. The difference between the total receivables and the balance in Allowance for Doubtful Accounts at the end of a period is referred to as the net realizable value of the receivables.
4. Allowance for Doubtful Accounts has an unadjusted balance of $400 at the end of the year, and uncollectible accounts expense is estimated at 1% of net sales. If net sales are $300,000, compute the amount of the adjustment to record the provision for doubtful accounts.
- $400
- $3,400
- $3,000
- $2,600
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