Question 9 2.5 pts

Reversing entries are recorded on the third day of the new accounting period.

True

False

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Question 10 2.5 pts

When making a collection, no entry was recorded to reinstate an account previously written off. The allowance method is being used. This error would cause:

net income to be understated.

None of these is correct.

total liabilities to be understated.

total assets to be overstated.

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Question 11 2.5 pts

The journal entry to write off an account judged to be uncollectible under the allowance would include a credit to:

Accounts Receivable.

Bad Debts Expense.

Sales.

Allowance for Doubtful Accounts.

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Question 12 2.5 pts

Town and Country Saddle learns the account receivable for a customer is uncollectible. The journal entry under the allowance method to write-off an account is to:

debit Allowance for Doubtful Accounts; credit Accounts Receivable.

debit Sales; credit Allowance for Doubtful Accounts.

debit Bad Debts Expense; credit Accounts Receivable.

debit Allowance for Doubtful Accounts; credit Bad Debts Expense