(You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer . Any boxes left with a question mark will be automatically graded as incorrect.)

Knowledge Check 01 The allowance method of accounting for bad debts has the following advantages over the direct write-off method including: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) 2 Records estimated bad debts expense in the period when the related sales are recorded. Records estimated bad debts expense when the account receivable is determined to be uncollectible. Reports accounts receivable on the balance sheet at the estimated amount of cash to be collected Reports sales on the income statement at the estimated amount of cash to be collected Knowledge Check 01 Sellers allow customers to use credit cards for all of the following reasons: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) 2 seller does not have to decide who gets credit seller accepts the risk for extending credit to customers 2 seller receives cash sooner than if credit is granted directly to the customers 2 may allow seller to increase sales volume. 2 seller determines which customers receive credit and how much