TRUE OR FALSE.

1.Bad debts Expense is a part of cost of good sold.

2. When a customers debt is written off as uncollectible, the account Allowance for Doubtful Accounts is credited.

3. Net Realizable value equals Accounts receivable less for Doubtful Accounts.

4. Bad debts Recovered is an asset.

5. The direct write off method will sometimes use the Allowance for Doubtful Accounts account.

6. The allowance account is increased with a credit.

7. Estimating bad debts is just an estimate and may not be very accurate.

8. The allowance account is reported on the balance sheet.

9. The direct method does not use the Allowance account.

10. Bad debts expense is reported on the balance sheet.

11. The Allowance account is drained by debit.

12. A bad debts expense can be shown before it happens.

13. The direct method used the Allowance account.

14. Reinstatement of a bad debt in the allowance method requires an entry to reinstate accounts receivable along with an entry to record the amount received.

15. The Allowance of Doubtful Accounts is filled with a credit.