A non-interest bearing note includes an interest component True False The expense associated with an uncollectible account is recognized when it has been determined that a customer will not pay the amount owed under the direct write-off method uncollectible method allowance method reserve method; The discount on a note payable gradually become If an accounts receivable is written off under the direct write-off method in one accounting period and is collected in the following period, which of the following is required in the second period when reinstating the account? a credit to Bad Debt Expense a debit to Accounts Receivable None of the above a credit to Cash All of the above Under the direct write-off method, the account credited when an account is determined to be uncollectible is Accounts Receivable Allowance for Bad Debts interest expense interest revenue None of the above interest payable interest receivable Bad Debt Expense; Sales Cash The accounting concept that states expenses should be matched with the revenues they helped to produce is the uncollectible accounts technique contra-revenue principle contra-account concept matching principle allowance method A notification to the payee that a bank has collected interest on a note and added the amount to the payee's account is called a collection record credit advice credit notice debit notice The amount a business expects to collect from its accounts receivable is a percentage of the write-off amount a net realizable value a cash shortag the allowance method an expense National Bank has discounted a note for Clems, Inc. This is a 9% note with a maturity value of $15,000 for 90 days. The debit to Discount on Notes Payable in the general journal will be in the amount of debit advice $14,662.50 $15,337,50 $15,000.00 $14,887.50 $337.50