TRUE OR FALSE

1. At the end of a period, before the accounts are adjusted, Allowance for Doubtful Accounts has a credit balance of $500, and net sales on account for the period total $800,000. If uncollectible accounts expense is estimated at 1% of net sales on account, the current provision to be made for uncollectible accounts expense is $8,500.
2. Allowance for Doubtful Accounts is a liability account
3. At the end of a period, before the accounts are adjusted, Allowance for Doubtful Accounts has a credit balance of $2,000. If the estimate of uncollectible accounts determined by aging the receivables is $30,000, the current provision to be made for uncollectible accounts expense is $30,000.
4. At the end of a period, before the accounts are adjusted, Allowance for Doubtful Accounts has a credit balance of $5,000. If the estimate of uncollectible accounts determined by aging the receivables is $50,000, the current provision to be made for uncollectible accounts expense is $45,000
5. When using the estimate-based on sales method, the entry to record uncollectible accounts expense includes a credit to the Accounts Receivable account.
6. When using the estimate based on analysis of receivables, the amount computer in the analysis is always the required amount that would be recorded in the adjusting entry.
7. The allowance for doubtful accounts is similar to accumulated depreciation in that the account represents the required amount that would be recorded in the adjusting entry.
8. Generally accepted accounting principles do not normally allow the use direct write-off method of accounting for uncollectible accounts.
9. The direct write-off method records uncollectible accounts expense in the yea the specific account receivable is determined to be uncollectible.
10. The equation for computing interest on an interest-bearing note is as follows: interest equals maturity value times rate times time.
11. The due date a 60-day note dated July 10 is September 10
12. The maturity value of a 12%, 60-day note for $5,000 is $5,600.