Question 1:What are the two methods used to record uncollectible accounts (bad debts)? When is it acceptable to use the direct write-off method?

Question 2:Under the allowance method, what are the 3 ways to estimate Bad Debts? Which method is income statement oriented and which is balance sheet oriented?

Question 3:If a company uses the direct write-off method for accounts receivable, what is the journal entry to record a write-off and how does it affect the financial statements?

Question 4:If a company uses the allowance method to account for uncollectible accounts, what is the journal entry to record the write-off accounts receivable? What is the journal entry to record the collection of an amount previously written off? What is the effect of these transactions on the financial statements?

Question 5:What are the basic forms of financing agreements to obtain cash from accounts receivable?

Question 6:When you assign accounts receivable, who has the risk of ownership?

Question 7:How are assigned accounts receivable reported on the balance sheet?