1. The direct write-off method of accounting for bad debts

1. Debits the allowance for doubtful account with the amount of bad debts written off
2. Estimates bad debt losses
3. Shows only actual losses from uncollectible accounts receivable as an expense.
4. None of the above

2. Which statement concerning receivables is incorrect?

1. Each of the major types of receivables should be listed separately in the statement of financial position or in the attached notes
2. None of the statements is incorrect
3. Interest revenue must be disclosed as other income in the income statement
4. Both the gross amount of receivables and the allowance for doubtful account should be disclosed

3. Notes receivable are recognized in the accounts at

1. Maturity value
2. Cash net realizable value
3. Face value

4. Short term receivables

1. Can have a related allowance account called Allowance for Doubtful Account
2. Neither is correct
3. Both statements are correct
4. Use the same estimations and calculations as accounts receivable to determine cash realizable value