Question 22 2 pts Under the percentage of sales method, the credit sales are analyzed to estimate the amount that will not be collected True False u Question 23 2 pts Some businesses and individuals who "charge it" are unwilling or unable to pay for it." True False Question 24 2 pts There are three methods of accounting for uncollectible accounts-the direct write-off method, the allowance method, and the reserve method. True False Question 25 2 pts When all of the cash for an account previously written off under the direct write-off method is unexpectedly collected, the correct entry is Odebit Bad Debt Expense and credit Accounts Receivable. dobit Accounts Receivable and credit Bad Debt Expense. Odebit Cash and credit Accounts Receivable dependent on the period in which the cash was collected Question 26 2 pts One method for estimating the amount of uncollectibles involves taking a percentage of sales on Sccount. True Fake Question 27 2 pts The balance of the allowance for bad debts account after adjustment, using the percentage of sales method, must be equal to the percent of uncollectible accounts multiplied by the amount of credit O True Fale Question 28 2 pts Under the direct write-off method, when a previously written-off account is recovered in the same accounting period, which of the following entries is required to reinstate the account? Odebit Accounts Receivable and credit Bad Debt Expense Odebit Accounts Receivable and credit Cash Odebit Cash and credit Bad Debt Expense debit Cash and credit Accounts Receivable Question 29 2 pts The percentage of sales method emphasizes proper estimating and reporting of bad debt expense on the income statement and the matching of expenses with revenues. Thur False Question 38 2 pts When an account has been written off under the direct write-off method in one period and is collected in a subsequent period, the credit to reinstate the account is made to Accounts Receivable Bad Debt Expense Bad Debt Income Uncollectible Accounts Recovered Question 39 2 pts When it is possible to make a reasonable estimate of the amount of uncollectible accounts, the allowance method is preferred for financial reporting purposes. True O False 2 Question 40 2 pts The credit portion of an adjusting entry to enter the estimate for uncollectible accounts can be made directly to a specific receivable account. True O False