1. The direct write-off method: a.may be used only by businesses with five or fewer...
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Accounting
1. The direct write-off method:
a.may be used only by businesses with five or fewer accounts receivable.
b. is used by businesses whose receivables are a small part of their current assets.
c. does not allow for reinstatement if the amount owed is received after being written off.
d. may not be used by companies that accept MasterCard or VISA.
2. After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $665,753 and Allowance for Doubtful Accounts has a balance of $24,773. What is the net realizable value of the accounts receivable?
a. $24,773
b. $690,526
c. $665,753
d. $640,980
3.Allowance for Doubtful Accounts has a debit balance of $326 at the end of the year (before adjustment), and Bad Debt Expense is estimated at 4% of sales. If net sales are $909,100, the amount of the adjusting entry to record the estimate of the uncollectible accounts is
a. $36,038
b. $36,364
c. $326
d. $36,690
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