CHAPTER SEVEN True-False: The following statements are either true or false. Place a (T) in the parentheses before each true statement and an (F) before each false statement. 1. ()If cash from credit card sales is received immediately when the credit card receipts are deposited at the bank, the credit card expense is recorded at the time the sale is recorded. 2. (T) Businesses with credit customers must maintain a separate account for each customer. 3. )After all entries are posted, the sum of the balances in the Accounts Receivable Ledger should be equal to the 4. Under the allowance method of accounting for bad debts, accounts receivable are reported on the balance sheet at 5. () At the time an adjusting entry to record estimated bad debts expense is made, the credit side of the entry is to 6. (When an account deemed uncollectible is written off against Allowance for Doubtful Accounts, the estimated 7. ()The income statement approach to estimating bad debts is based on the idea that some percentage of credit sales 8. ()The balance sheet approach to estimating bad debts is based on the idea that some particular percentage of a balance of the Accounts Receivable account in the General Ledger. the amount of cash proceeds expected from their collection. Accounts Receivable realizable amount of Accounts Receivable is decreased. will be uncollectible. company's credit sales will become uncollectible, )Aging of accounts receivable requires the review of each account in the accounts receivable ledger. U. )A 90-day note, dated August 17, matures on November 16 11. (T) Although the direct write-off method of accounting for bad debts usually mismatches revenues and expenses, it may be allowed in cases where bad debt losses are immaterial in relation to total net sales and net income. 12. (T) A company that pledges its accounts receivable as security for a loan should disclose the fact in the notes to the financial statements