1. Which method of recording bad debt loss is consistent with accrual accounting? a. Allowance method b. Direct' writeoff method Percent of sales method d. Percent of accounts receivable method C. 2. When the allowance method is used, the entry to record the writeoff of a specific account would a. Decrease both accounts receivable and the allowance b. Decrease accounts receivable and increase allowance c. Increase both accounts receivable and the allowance d. Increase accounts receivable and decrease the allowance 3. Under the allowance method, the journal entry to record the writeoff of a specific uncollectible account a. Affects neither net income nor working capital b. Affects neither net income nor accounts receivable c. Decreases both net income and working capital d. Decreases both net income and accounts receivable 4. Under the allowance method, the entries at the time of collection of an account previously written off would a. Decrease the allowance for doubtful accounts b. Increase net income c. Have no effect on the allowance for doubtful accounts d. Have no effect on net income 5. Collection of accounts receivable previously written off results in an increase in cash and an increase in a. Accounts receivable b. Allowance for doubtful accounte c. Bad debt expense d. Retained earnings