Multiple Choice
Which of the following is not true about the Allowance for Doubtful Accounts?
A) It is a contra asset account.
B) It is a liability account.
C) It is used instead of reducing accounts receivable directly.
D) It is debited when uncollectible accounts are written off.
E) It is credited when bad debts expense is estimated and recorded.
Correct Answer:
Verified
Correct Answer:
Verified
Q100: Giorgio Italian Market bought $4,000 worth of
Q101: The direct write-off method of accounting for
Q102: The practice of placing dishonored notes receivable
Q103: No attempt is made to estimate bad
Q104: Mercks uses the perpetual inventory system, and
Q106: A high accounts receivable turnover in comparison
Q107: Woods Co. uses a perpetual inventory system,
Q108: The period of a note is the
Q109: A company had the following items
Q110: Lemming makes an $18,750, 120-day, 8% cash