9.

The accounting concept that states expenses should be recognized in the same period with the revenues they helped to produce is the

a. allowance method.

b. matching principle.

c. uncollectible accounts technique.

d. contra-account principle.

10.

Which of the following is an advantage of using the direct write-off method?

a. The amount of Accounts Receivable reported on the balance sheet does not represent the amount of cash actually expected to be collected.

b. The revenue associated with the sale might be recognized in one period and the expense resulting from the uncollectible account recognized in another.

c. It is very simple to apply.

d. The amount of Bad Debt Expense recognized in a given period is subject to manipulation by management.

11.

Under the percentage of sales method, the adjusting entry at the end of the period for bad debt expense is affected by the current balance in the Allowance for Doubtful Accounts account.

True

False

12.

The adjusting entry to record an increase in Allowance for Doubtful Accounts involves

a. debiting Allowance for Doubtful Accounts and crediting Bad Debt Expense.

b. debiting Bad Debt Expense and crediting Allowance for Doubtful Accounts.

c. debiting Allowance for Doubtful Accounts and crediting Accounts Receivable.

d. debiting Accounts Receivable and crediting Bad Debt Expense.

13.

The adjusting entry to record an increase in Allowance for Doubtful Accounts involves

a. debiting Allowance for Doubtful Accounts and crediting Bad Debt Expense.

b. debiting Bad Debt Expense and crediting Allowance for Doubtful Accounts.

c. debiting Allowance for Doubtful Accounts and crediting Accounts Receivable.

d. debiting Accounts Receivable and crediting Bad Debt Expense.