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
