20. Two different methods of accounting for Uncollectible Receivables are A. Direct write-off Method and Allowance Method B. Bad Debt Expense Method and Allowance Method c. Uncollectible Method and Direct write-off Method D. Estimated Uncollectible Method and Receivables Method 21. Which is NOT a characteristic of the Direct Write-off method: A. Bad debt expense is recorded when the specific customer accounts are determined be uncollectible B. Allowance account is NOT used. C. Allowance account is used. D. Small companies & those with few receivables are primary users 22. Which are the characteristics for the allowance method for Uncollectible Receivables: A. Bad debt expense is recorded using estimates based on two methods (percent of sales and analysis of receivables). 8. The allowance account is used C. Large companies and those with a large amount of receivables are primary users D. All of the above 23. Shipway Company uses the allowance method and uses the percent of credit sales method of estimating uncollectible accounts expense. Based on past history and industry averages, %% (.0075) of credit sales are expected to be uncollectible. Shipway Company recorded $4,000,000 of credit sales during the year. The amount of bad debt expense to be recorded December 31 under the allowance method is: A. $300,000 B. $ 28,000 C. $30,000 D. None of the above 24. For problem #23, the journal entry for December 31, would be a debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts. A True b. False 25. Fixed Assets have all the following characteristics except A. They are offered by sale as a part of normal operations B. They are long-term or relatively permanent C. They exist physically D. They are owned and used by the company in its normal operations If the answer to Step 1 in Classifying Costs (Is the purchased item long-lived?) is NO, then, the item is recorded as an expense. A. True B. False