accounting true and false?

7 Answer:

When a business uses the allowance method, an adjustment entry

must be made.

a. true

b. false

8 Answer:

The two general ledger accounts affected by the direct write-off

method of accounting for uncollectable accounts are Uncollectable

Accounts Expense and Accounts Payable.

a. true

b. false

9 Answer:

Another term for uncollectable accounts is classified as a contra

asset account.

a. true

b. false

10 Answer:

The Allowance for Uncollectable accounts account is classified

as a contra asset account.

a. true

b. false

11 Answer:

when a business sells goods or services on account, it knows

which charge customer's accounts will be uncollectable.

a. true

b. false

12 Answer:

When an account is written off as uncollectable, an explanation

should be written on the account.

a. true

b. false

13 Answer:

Large businesses with many charge customers usually use the direct

write-off method of accounting for uncollectable accounts.

a. true

b. false

14 Answer:

The normal balance of Allowance for Uncollectable accounts is a

credit.

a. true

b. false

15 Answer:

Under the allowance method, Allowance for uncollectable account

is debited when a charge customer's account is written off as a

bad debt.

a. true

b. false

16 Answer:

Businesses that sell on credit usually expect to sale more than

if they accepted only cash.

a. true

b. false

17 Answer:

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

to pay.

a. true

b. false

18 Answer:

The allowance for Uncollectable Accounts account is reported on

the balance sheet as an addition to Accounts Receivable.

a. true

b. false

i read the entire chapter but i feel like im being trick questions! please help!!!

1 Answer

Relevance
  • 6 years ago
    Favorite Answer

    7. a

    8. b

    9. a

    10. a

    11. b.

    12. a.

    13. b

    14. a.

    15. a.

    good luck

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