accounting true and false?
When a business uses the allowance method, an adjustment entry
must be made.
The two general ledger accounts affected by the direct write-off
method of accounting for uncollectable accounts are Uncollectable
Accounts Expense and Accounts Payable.
Another term for uncollectable accounts is classified as a contra
The Allowance for Uncollectable accounts account is classified
as a contra asset account.
when a business sells goods or services on account, it knows
which charge customer's accounts will be uncollectable.
When an account is written off as uncollectable, an explanation
should be written on the account.
Large businesses with many charge customers usually use the direct
write-off method of accounting for uncollectable accounts.
The normal balance of Allowance for Uncollectable accounts is a
Under the allowance method, Allowance for uncollectable account
is debited when a charge customer's account is written off as a
Businesses that sell on credit usually expect to sale more than
if they accepted only cash.
When the direct write-off method of accounting is used, Accounts
Receivable and the customer's account in the subsidiary ledger are
credited when it is determined that the charge customer is not going
The allowance for Uncollectable Accounts account is reported on
the balance sheet as an addition to Accounts Receivable.
i read the entire chapter but i feel like im being trick questions! please help!!!
- Mike D.Lv 56 years agoFavorite Answer