The allowance for uncollectible accounts is: A. An expense. B. A contra asset account. C. A contra revenue account. D. A liability account. Under the Allowance method, when exist2, 500 of the accounts receivable is determined to be uncollectible and written off, which of the following should the company record? A. A debit to bad debt expense and a credit to allowance for doubtful accounts B. A debit to allowance for doubtful accounts and a credit to bad debt expense C. A debit to bad debt expense and a credit to accounts receivable D.A debit to allowance for doubtful accounts and a credit to accounts receivable Gershwin Wallcovering Inc. shipped the wrong shade of pint to a customer. The customer agreed to keep the paint upon being offered a 15% price reduction. Gershwin would record this reduction by crediting accounts receivable and debiting: A Sales. B Sales discounts. C Sales returns. D. Sales allowances. Eagle Inc. recorded credit tales of exist750,000, of which exist500,000 is not yet due, exist150,000 is past due for up to 180 days, and exist100,000 is past due for more than 180 days Under the aging of receivables approach, Crimson Inc. expects it will not collect 1.5% of the amount not yet due, 12% of the amount past due for up to 180 days, and 25% of the amount past due for more than 180 days. The allowance account had a debit balance of exist1,000 before adjustment. After adjusting for bad debt expense, what is the ending balance of the allowance account? A. exist59,000 B. exist50, 500 C. exist50,000 D. exist26,000 Shupe Inc. estimates uncollectable accounts based on the percentage of accounts receivable. What effect will recording the estimate of uncollectable accounts have on the accounting equation? A. increase liabilities and decrease owners' equity B. Decrease assets and decrease liabilities C. Decrease assets and decrease owners' equity D. Increase assets and decrease owners' equity