Question
34. For a company with significant uncollectible receivables, the direct write-off method is unsuitable because A. it overstates liabilities on the balance sheet B. It
34. For a company with significant uncollectible receivables, the direct write-off method is unsuitable because A. it overstates liabilities on the balance sheet B. It violates the matching principle C. it uses estimates for determining the bad debt expense D. companies are not able to track customer payment histories 35.Accounts Receivable has a balance of $4,000 and the Allowance for Bade Debts has a Credit Balance of $400. The allowance method is used. What is the net realizable value of the Accounts is Receivable after a $160 is written off? A. $3,340 B. $3,760 c. $3,600 D. $4,000 33. A company with significant amounts of accounts receivable experiences uncollectible accounts fromtime to time. If the company uses the direct write-off method, the effect of writing off an uncollectible receivable will be A. a reduction in net income B. negligible on net income C. an increase in total assets D. a generation of positive cash flow 34. For a company with significant uncollectible receivables, the direct write-off method is unsuitable because A. it overstates liabilities on the balance sheet B. it violates the matching principle C. it uses estimates for determining the bad debt expense D. companies are not able to track customer payment histories 35.Accounts Receivable has a balance of $4,000 and the Allowance for Bade Debts has a Credit Balance of $400. The allowance method is used. What is the net realizable value of the Accounts is Receivable after a $160 is written off? A. $3,340 B. $3,760 C. $3,600 D. $4,000
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