Question: What account is used to write off bad debts using the:

A. allowance method:

B. direct write-off method:

2.Leonard had credit sales of $1,200,000, a balance in accounts receivable of

$250,000 and an allowance for uncollectible accounts of a $2,100 credit balance.

How much will Bad Debt Expense be if:

A.Leonard estimates uncollectibles at 2% of credit sales: Hint: $24,000

B.Leonard estimates uncollectibles at 10% of accounts receivable: Hint: $22,900

3. Drebin Security Systems sold merchandise to a customer in exchange for a $50,000,

9-month, noninterest-bearing note when an equivalent loan would carry 10%

interest. Drebin would record sales revenue on the date of sale equal to:

Hint:46,250 = sales revenue

4. What are the criteria for determining whether a sale of receivables has occurred?