6) Which d the tolloing statements is TRUE ef the direct write of method? sin more aeurate net inome than amy other method. GAAP guire ube compantes to low the direct write-off method y itable for mall cpan that have very few uncollectible recevan b) peovidbermahing of revenue with expen 7) 7 the allowance method of accountingg for uncollecte receivables A) vlates the matching principle Bis ued to measure bad debts records bad debt expemse in the peind the accmunts receivable is written of requires the use of a contra liability account 8) The Allewance for Bad Debts account A) increases with a debit B) is added to accounts receivable C) isa liablity account O holds the pool of "unknown" uncollectible accounts 9) Which of the following is TRUE of the balance sheet presentation of the Allowance for Bad Debts? A) It is shown as a contra account related to accounts receivable. B) It is reported as a separate, independent line item under current assets C) It is reported as an operating expense. D) It is reported as a current liability. 9) 10) Accounts Receivable has a balance of 533.000, and the Allowance for Bad Debts has a credit balance of $3300, The allowance method is used. What is the net realizable yalue of Accounts Receivable before and after a S2300 aocount receivable is written off? A) $27,400; $32,000 C) $29,700; $29,700 10) B) s29,700; s27 A00 D) s27,400; S27 A00 bod o I1) After the December 31, 2019 adjusting journal entries have been posted, Sinclair Enterprises has 11) the following account balances (all accounts have normal balances): Account Balance $154,000 $4700 $8000 Account Title Accounts Receivable Allowance for Bad Debts Bad Debts Expense What is the net realizable as of December 21, 2019? D) $149,300 B) S141,300 C) $146,000 A) $158,700 12) 12) The entry to write off an account receivable under the allowance method will B) reduce net income D) increase total assets A) increase net income C) have no effect on net income MCM