Question 13 2.5 pts

What would be the basis for the following journal entry if it appears on Travis Company's records? Travis uses the allowance method.

Allowance for Doubtful Accounts 150

Accounts ReceivableTim Morgan 150

The firm is writing off a specific account.

The firm is estimating its uncollectible accounts.

It is a reversing entry.

The firm is making a collection of a previously written-off account.

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Question 14 2.5 pts

Myra's balance of Accounts Receivable is $4,000. The balance of the Allowance account is $600 credit. Myra writes off a $150 uncollectible account. The effect on net realizable value of the receivables is that it:

increases net realizable value.

reduces net realizable value.

is unchanged.

is undeterminable.

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Question 15 2.5 pts

The net realizable value of a company's Accounts Receivables is:

decreased at the time of a specific write-off.

the guaranteed amount the company will collect from its customers.

increased at the time of a specific write-off.

unchanged at the time of a specific write-off.

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Question 16 2.5 pts

A company writes off a specific account as uncollectible, but later the customer pays. The journal entry to record the reinstatement under the allowance method includes a(n):

decrease to Sales.

increase to Allowance for Doubtful Accounts.

decrease to Bad Debts Expense.

decrease to Cash.