TRUE/FALSE 1. Notes receivables and accounts receivables can also be called trade receivables.__________ 2. Receivable from company owners and officers should be disclosed separately on the balance sheet.___________ 3. Receivables not currently collectible are reported in the investments section of the balance sheet._________ 4. Since those responsible for receivables record keeping and credit approval do not handle cash, these duties do not need to be separated to maintain good internal control.__________ 5. Maintaining the Accounts Receivable control account and the Accounts Receivable Subsidiary Ledger should be assigned to the same employee for good internal control.__________ 6. When companies sell their receivables to other companies, the transaction is called factoring.______ 7. Of the two methods of accounting for uncollectible receivables, the allowance method provides in advance for uncollectible receivables.____________ 8. The difference between Accounts receivable and its contra asset account is called net realizable value.___________ 9. The estimate based on sales method violates the matching principle.___________ 10. When the estimate based on analysis of receivables is used, income is reduced when a specific receivable is written off.___________ 11. When an account receivable that has been written off is subsequently collected, the account receivable is reinstated._________ 12. Although Allowance for Doubtful Accounts normally has a credit balance, it may have either a debit or a credit balance before adjusting entries are recorded at the end of the accounting period.___________ 13. At the end of a period, before the accounts are adjusted, Allowance for Doubtful Accounts has a credit balance of $250, and net sales on account for the period total $500,000. If uncollectible accounts expense is estimated at 1% of net sales on account, the current provision to be made for uncollectible accounts expense is $4,750. 14. 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.___________ 15. Allowance for Doubtful Accounts is a liability account._____________ 16. 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.____________ 17. 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.__________ 18. When using the estimate-based on sales method, the entry to record uncollectible accounts expense includes a credit to the Accounts Receivable account.__________ 19. When using the estimate based on analysis of receivables, the amount computed in the analysis is always the required amount that would be recorded in the adjusting entry.__________ 20. The allowance for doubtful accounts is like accumulated depreciation in that the account represents the total of all accounts written-off since the beginning year.____________