Accounting chapter 17 and 18

as depreciation expense is recorded for a plant asset, the original cost of the asset is decreased in the account

false

depreciation expense should be calculated for land just like any other plant asset

false

personal property includes buildings but not land

false

the balance of the account allowance for uncollectible accounts is extended to the income statement credit column of the work sheet

false

the percentage of total sales on account method of estimating uncollectible accounts expense assumes that a portion of every sales dollar will become uncollectible

false

when a customer account is written off under the allowance method, book value of accounts receivable decreases

false

when an account is written off, the account balance is transferred to allowance for uncollectible accounts

false

when the allowance account has a previous credit balance, this previous balance is subtracted from the amount of the adjustment for uncollectible accounts expense

false, added

to record depreciation expense for a fiscal period, the accumulated depreciation account is debited

false, credited

recording a plant asset for the amount paid for the asset is an application of the accounting concept matching expenses with revenue

false, historical cost

three journal entries are recorded for the collection of a written-off account receivable

false, two

estimating the percentage of uncollectible accounts expense at the end of a fiscal period is an application of the accounting concept...

matching expenses with revenue

when the percentage of total sales on account method is used, the estimated uncollectible accounts expense is calculated by...

multiplying total sales on account times the percentage

the total depreciation expense for a fax machine purchased for $700 with an estimated salvage value of $100 is...

$600

when an account is determined to be uncollectible...

a journal entry is made to cancel the uncollectible account

at the end of a fiscal period, the account credited to show the estimated amount of uncollectible accounts is...

allowance for uncollectible accounts

when a plant asset is sold for more than asset's book value...

cash received plus accumulated depreciation equals original cost plus gain on disposal

when the account allowance for uncollectible accounts is used, a customer past-due account is written off as uncollectible by...

debiting allowance for uncollectible accounts and crediting accounts receivable and the customer account

when uncollectible accounts are estimated, writing off an account...

does not change the book value of accounts receivable

when a plant asset is disposed of, a journal entry is recorded that...

removes the original cost of the plant asset and its related accumulated depreciation

allowance for uncollectible accounts is a contra account to its related asset account, accounts receivable

true

allowance for uncollectible accounts is debited to write off a customer account

true

declining-balance depreciation is calculated by multiplying the book value by a constant depreciation rate at the end of each fiscal period

true

entries resulting from cash received for a previously written-off account are recorded in a cash receipts journal's special amount columns

true

estimated total depreciation expense is calculated as original cost less estimated salvage value

true

the original cost of a plant asset minus accumulated depreciation is known as the book value of a plant asset

true

generally, a business removes a plant asset from use and disposes of it...

when the asset is no longer usable