The balance of the Allowance for Doubtful Accounts account is reported as

A) a liability on the balance sheet.

B) a deduction from Sales on the income statement.

C) a deduction from Accounts Receivable on the balance sheet.

D) an expense on the income statement.

The adjusting entry to record estimated losses from uncollectible accounts consists of a debit to

A) Uncollectible Accounts Expense and a credit to Accounts Receivable.

B) Uncollectible Accounts Expense and a credit to Allowance for Doubtful Accounts.

C) Allowance for Doubtful Accounts and a credit to Accounts Receivable.

D) Accounts Receivable and a credit to Allowance for Doubtful Accounts.

The method of accounting for losses from uncollectible accounts that produces a proper valuation of the accounts receivable on the balance sheet is

A) the allowance method based on aging the accounts receivable.

B) the allowance method based on a percentage of net credit sales. C) the direct charge-off method.

D) either the allowance method or the direct charge-off method.

The method that must be used to record bad debt losses for tax purposes is the

A) allowance method based on a percent of net credit sales.

B) allowance method based on an aging of accounts receivable.

C) allowance method based on a percent of total accounts receivable outstanding.

D) direct charge-off method.

A firm reported net credit sales of $225,000 during the year and has a balance of $20,000 in its Accounts Receivable account at year-end. Prior to adjustments, Allowance for Doubtful Accounts has a debit balance of $100. The firm estimates its losses from uncollectible accounts to be one-half of 1 percent of net credit sales. The entry to record the estimated losses from uncollectible accounts will include a credit to Allowance for Doubtful Accounts for

A) $1,225.

B) $1,125.

C) $900.

D) $2,250.

On December 31, prior to adjustment, Allowance for Doubtful Accounts has a debit balance of $800. An aging of the accounts receivable produces an estimate of $5,200 of probable losses from uncollectible accounts. The adjusting entry needed to record the estimated losses from uncollectible accounts is made for

A) $800.

B) $4,400.

C) $5,200.

D) $6,000.

On December 31, prior to adjustments, the balance of Accounts Receivable is $52,000 and Allowance for Doubtful Accounts has a debit balance of $600. The firm estimates its losses from uncollectible accounts to be 5% of accounts receivable at the end of the year. The adjusting entry needed to record the estimated losses from uncollectible accounts is made for

A) $600.

B) $2,000.

C) $2,600.

D) $3,200.

Allowance for Doubtful Accounts has a credit balance of $2,000 immediately before the write-off of a $600 account receivable. The balance of Allowance for Doubtful Accounts immediately after the write-off is

A) $600 debit.

B) $1,400 credit.

C) $1,400 debit.

D) $2,600 credit.

D) $2,250.