k

The interest on a $10,000, 6%, 60-day note receivable is

$100

When an account becomes uncollectible and must be written off

Accounts Receivable should be credited

A dishonored note receivable

Is no longer negotiable

Bad Debt Expense is reported on the income statement as

an operating expense.

The account Allowance for Doubtful Accounts is classified as a(n)

contra account to Accounts Receivable

To record estimated uncollectible accounts using the allowance method, the adjusting entry would be a

debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts.

Under the allowance method, Bad Debt Expense is recorded

for an amount that the company estimates it will not collect.

The collection of an account that had been previously written off under the allowance method of accounting for uncollectibles

requires a correcting entry for the period in which the account was written off.

Under the allowance method of accounting for uncollectible accounts,

the cash realizable value of accounts receivable in the balance sheet is the same before and after an account is written off.

Under the allowance method, when a specific account is written off

total assets will be unchanged

All the following are needed for the computation of depreciation except

training costs of manufacturing personnel