SLUI ront Styles | Paragraph receivables after adjustment would be (A) $99,000; (B) $99.400; (C) $99,600; (D) $98,000, (E) none of these. Under the direct write-off method, when an account receivable is written off in one account period and is collected in the following accounting period, which of the following is required in the second period when reinstating the account? (A) a debit to Accounts Receivable; (B) a credit to Bad Debt Expense; (C) a credit to Cash; (D) a debit to Cash; (E) a credit to Accounts Receivable. To minimize the amount of uncollectible accounts, the credit department would need to (A) perform an extensive review of each applicant; (B) apply strict credit standards; (C) assess a large service fee; (D) both A and B: (E) none of these. Allowance for Bad Debts is an (A) contra-sales account; (B) liability account: (C) asset: (D) contra-asset; (E) contra-liability, Last year, Hart Company had credit sales in the amount of $1,000,000, and it had uncollectible accounts in the amount of $15,000. Based on last year, what would the estimated percent of uncollectible accounts be this year? (A) 0.15%; (B) 1.5%; (C) 15%; (D) 150%; (E) cannot be determined An advantage of the direct write-off method of determining uncollectible accounts is (A) it is very simple to apply: (B) efforts to collect are extended over several months; (C) the expense can be manipulated by management (D) the Accounts Receivable amount reported on the balance sheet does not represent the amount of cash actually expected to be collected: (E) it is acceptable for financial reporting purposes. The accounting concept that states expenses should be matched with the revenues they helped to produce is the (A) contra-account concerti (B) allowance method; (C) uncollectible accounts technique; (D) matching principle; (E) contra-revenue principle. | | - |