Homework Answers
Correct answer--------(a) The allowance method for bad debts violates the matching principle, but the direct write-off method does not.
.
The fact is that the allowance method does not violates the matching principle and Direct write-off method does violates the matching principle.
All other statements about direct write-off method are true.
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Which one of the following is not an accurate statement regarding the direct write-off method of...
If a company uses the allowance method of accounting for bad debts which one of the...
If a company uses the allowance method of accounting for bad
debts which one of the following is true? Violates the matching
principle it will record bad debt only when an account is
determined to be uncollectible
If a company uses the allowance method of accounting for bad debts, which one of the following statements is true? O A. It violates the matching principle O B. It will record bad debts only when an account is determined to be uncollectible...
Saved The following list describes aspects of either the allowance method or the direct write-offf method to acco...
Saved The following list describes aspects of either the allowance method or the direct write-offf method to account for bad debts. For each item listed, indicate if the statement best describes either the allowance method or the direct write-off method. List Method 1 May be used when bad debts expense is very small in relation to a company's sales and net income. 2 The write-off of a specific account does affect net income The loss from an uncollectible account receivable...
Cite all sources. Please answer the following question(s): 1. Compare and contrast the direct w...
Cite all sources.
Please answer the following question(s):
1. Compare and contrast the direct write-off method and the
allowance method for bad debts.
2. Explain when the expense for uncollected accounting receivable
is recognized for each method. Why?
3. Why is the direct write-off method not considered to follow
generally accepted accounting principles (GAAP)?
4. Discuss the allowance method and the direct write-off method of
accounting for bad debts. When is the expense for uncollected
accounts receivable recognized under each...
Bad Debt Practice Exercises 26. The percentage of receivables method for estimating uncollectible accounts focuses on...
Bad Debt Practice Exercises 26. The percentage of receivables method for estimating uncollectible accounts focuses on a net realizable value b. the relationship between accounts receivable and bad debts expense c. income statement relationships d. the relationship between sales and accounts receivable 27. Holman Company uses the percentage of credit sales method. Cash sales are $1,000,000 and credit sales are $4,000,000. Management estimates that 1% of sales will be bad. What adjusting entry will Homan Company make to record the...
QS 7-4 Distinguishing between allowance method and direct write-off method LO P1, P2 Indicate whether each...
QS 7-4 Distinguishing between allowance method and direct write-off method LO P1, P2 Indicate whether each statement best describes the allowance method or the direct write-off method. List Method 1. Estimates bad debts expense related to the sales recorded in that period. 2. Matches the estimated loss from uncollectible accounts receivable against the sales they helped create. Usually does not best match sales and expenses because bad debts expense is not recorded until an account becomes uncollectible, which usually occurs...
Indicate whether the following are TRUE or FALSE. . The matching principle permits the use of the direct write-off...
Indicate whether the following are TRUE or FALSE. . The matching principle permits the use of the direct write-off method of accounting for uncollectible accounts when bad debts are very large in relation to a company's other financial statement items such as sales and net income. _____ Deferred income is an example of a revenue account that increases equity. _____. A credit memo on a bank statement is an example of a timing difference. _____. Federal laws prohibit the selling...
. Under the direct write-off method of accounting for uncollectible accounts a. the allowance account is...
. Under the direct write-off method of accounting for uncollectible accounts a. the allowance account is increased for the actual amount of bad debt at the b. a specific account receivable is decreased for the actual amount of bad debt at c. balance sheet relationships are emphasized. time of write-off the time of write-off. d. bad debt expense is always recorded in the period in which the revenue was recorded. Which of the following should not be included in the...
What is the journal entry to write off a customer's account under the direct write-off method?...
What is the journal entry to write off a customer's account under the direct write-off method? O No entry is required. O Debit Cash; credit Accounts Receivable/customer name. Debit Bad Debt Expense; credit Allowance for Uncollectible Accounts Debit Bad Debt Expense; credit Accounts Receivable/customer name.
please help Under the direct write-off method, when an account receivable is written off in one...
please help
Under the direct write-off method, when an account receivable is written off in one accounting period and is collected in the following accounting period, which of the following would be included in the journal entry? Oa. debit Accounts Receivable Ob. credit Bad Debt Expense Occredit Cash Od credit Accounts Receivable
Kimmel, Accounting, 6e TIMER Multiple Choice Question 123 The direct write-off method of accounting for bad...
Kimmel, Accounting, 6e TIMER Multiple Choice Question 123 The direct write-off method of accounting for bad debts O is the preferred method under generally accepted accounting principles O uses an allowance account. O uses a contra asset account. O does not require estimates of bad debt losses. Click if you would like to Show Work for this question: Oren Show Work Question O Type here to search 2 3 5 6 8 0
If a company uses the allowance method of accounting for bad
debts which one of the following is true? Violates the matching
principle it will record bad debt only when an account is
determined to be uncollectible
If a company uses the allowance method of accounting for bad debts, which one of the following statements is true? O A. It violates the matching principle O B. It will record bad debts only when an account is determined to be uncollectible...
Saved The following list describes aspects of either the allowance method or the direct write-offf method to account for bad debts. For each item listed, indicate if the statement best describes either the allowance method or the direct write-off method. List Method 1 May be used when bad debts expense is very small in relation to a company's sales and net income. 2 The write-off of a specific account does affect net income The loss from an uncollectible account receivable...
Cite all sources.
Please answer the following question(s):
1. Compare and contrast the direct write-off method and the
allowance method for bad debts.
2. Explain when the expense for uncollected accounting receivable
is recognized for each method. Why?
3. Why is the direct write-off method not considered to follow
generally accepted accounting principles (GAAP)?
4. Discuss the allowance method and the direct write-off method of
accounting for bad debts. When is the expense for uncollected
accounts receivable recognized under each...
Bad Debt Practice Exercises 26. The percentage of receivables method for estimating uncollectible accounts focuses on a net realizable value b. the relationship between accounts receivable and bad debts expense c. income statement relationships d. the relationship between sales and accounts receivable 27. Holman Company uses the percentage of credit sales method. Cash sales are $1,000,000 and credit sales are $4,000,000. Management estimates that 1% of sales will be bad. What adjusting entry will Homan Company make to record the...
QS 7-4 Distinguishing between allowance method and direct write-off method LO P1, P2 Indicate whether each statement best describes the allowance method or the direct write-off method. List Method 1. Estimates bad debts expense related to the sales recorded in that period. 2. Matches the estimated loss from uncollectible accounts receivable against the sales they helped create. Usually does not best match sales and expenses because bad debts expense is not recorded until an account becomes uncollectible, which usually occurs...
. Under the direct write-off method of accounting for uncollectible accounts a. the allowance account is increased for the actual amount of bad debt at the b. a specific account receivable is decreased for the actual amount of bad debt at c. balance sheet relationships are emphasized. time of write-off the time of write-off. d. bad debt expense is always recorded in the period in which the revenue was recorded. Which of the following should not be included in the...
What is the journal entry to write off a customer's account under the direct write-off method? O No entry is required. O Debit Cash; credit Accounts Receivable/customer name. Debit Bad Debt Expense; credit Allowance for Uncollectible Accounts Debit Bad Debt Expense; credit Accounts Receivable/customer name.
please help
Under the direct write-off method, when an account receivable is written off in one accounting period and is collected in the following accounting period, which of the following would be included in the journal entry? Oa. debit Accounts Receivable Ob. credit Bad Debt Expense Occredit Cash Od credit Accounts Receivable
Kimmel, Accounting, 6e TIMER Multiple Choice Question 123 The direct write-off method of accounting for bad debts O is the preferred method under generally accepted accounting principles O uses an allowance account. O uses a contra asset account. O does not require estimates of bad debt losses. Click if you would like to Show Work for this question: Oren Show Work Question O Type here to search 2 3 5 6 8 0
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