Chapter 8

If the allowance method of accounting for uncollectible receivables is used, what general ledger account is credited to write off a customer's account as uncollectible?

Accounts receivable

An aging of a company's accounts receivable indicates that $3,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,200 credit balance, the adjustment to record bad debts for the period will require a

Debit to Bad Debts Expense for $1,800

Under the allowance method, when a year-end adjustment is made for estimated uncollectible accounts

Total assets are unchanged

Under the allowance method, writing off an uncollectible account

affects only balance sheet accounts

The balance in allowance for doubtful accounts must be carefully considered prior to the end of the year adjustment when applying which method?

estimate based on an analysis of receivables

The type of account and normal balance of Allowance for Doubtful Accounts is

Contra Asset Account, Credit

The journal entry to record a note received from a customer to apply on account is

Debit Notes receivable, credit Accounts receivable