An aging schedule shows a required balance in Allowance for Doubtful Accounts of $9,600. If there is a credit balance in the allowance account of $3,500 prior to adjustment, the adjustment amount is $6,100. *

True

False

Internal control over cash disbursements is more effective when payments are made by cash, rather than by cheque, including the incidental amounts paid out of petty cash. *

True

False

The principal amount of a 12%, 3-year, note receivable is $120,000 and is dated January 1, 2020. The interest revenue to be recognized on December 31, 2020 is $12,000. *

True

False

At the time of disposal, it is necessary to determine the book value of the long-term asset. If the disposal occurs during the year, depreciation for the fraction of the year to the date of disposal must be recorded. The book value is then eliminated by debiting the Accumulated Depreciation account for the total depreciation to the date of disposal and crediting the asset account for the cost of the asset. *

True

False