What are the two options available for recording and writing-off bad debts? Briefly describe each method.

What accounts are affected when recording and writing off bad debts under the direct write off method? Which account is debited, and which is credited?

What accounts are affected when recovering a bad debt under the direct write off method? Which account(s) are debited, and which are credited?

What accounts are affected when recording bad debts expense using the allowance method?

Under the Allowance Method, what method of estimating bad debt is based on income statement? Explain your answer.

Under the Allowance Method, what method of estimating bad debts is based on the balance sheet? Explain your answer.

Under the Allowance Method, which method of estimating bad debts uses both past and current receivables information to estimate the allowance amount? Explain your answer.

What accounts are affected when recording an honored note? What accounts are affected when recording a dishonored note?

How do you calculate the Accounts Receivable Turnover ratio?

What is the formula for computing interest?