Which of the following scenarios might occur after anticipating bad debt by setting up an Allowance for Doubtful Accounts?

Select one:

a. A customer is unable to pay the debt.

b. The customer informs the company to expect payment and pays the outstanding amount.

c. The customer is unable to pay the debt when it is due, but will be able to pay it in the future.

d. All the available choices

Which of the statement(s) is/are true?

Statement 1: Ethical lapses may be due to either deliberate decisions to falsify information or to poor day-to-day processes.

Statement 2: Accountants must always prioritize the accuracy and integrity of the information they work with.

Select one:

a. Only statement 2 is true

b. Both statements are true

c. Neither of the statements is true

d. Only statement 1 is true

Which of the following scenarios might occur after anticipating bad debt by setting up an Allowance for Doubtful Accounts?

Select one:

a. A customer is unable to pay the debt.

b. The customer informs the company to expect payment and pays the outstanding amount.

c. The customer is unable to pay the debt when it is due, but will be able to pay it in the future.

d. All the available choices

Under this method of accounting for bad debts, an account receivable is not written off until it has been determined to be uncollectible, and then it is written off directly to bad debt expense.

Select one:

a. Credit Sales Method

b. Allowance Method

c. Direct Write-off Method

d. Net Sales Method