1. 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.

   1. Days' Sales in Receivables
   2. Return on sales
   3. Direct-write off on sales
   4. 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.

   1. $400
   2. $3,400
   3. $3,000
   4. $2,600

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