QUESTION 10 Which of the following statements regarding the allowance method of accounting for uncollectible receivables is incorrect? Bad debt expense is not estimated The allowance method is based on the matching principle. The business does not wait to see which customers will not pay when estimating the allowance for bad debts. The Allowance for Bad Debts is used to hold the pool of unknown" uncollectible accounts. QUESTION 17 Which of the following is TRUE of the balance sheet presentation of the Allowance for Bad Debts? It is reported as a separate, independent line item under current assets. It is shown as a contra account related to accounts receivable. It is reported as an operating expense. It is reported as a current liability