Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 1. the direct write-off method: a.may be used only

1. The direct write-off method: a.may be used only by businesses with five or fewer...

80.2K

Verified Solution

Question

Accounting

1. The direct write-off method:

a.may be used only by businesses with five or fewer accounts receivable.

b. is used by businesses whose receivables are a small part of their current assets.

c. does not allow for reinstatement if the amount owed is received after being written off.

d. may not be used by companies that accept MasterCard or VISA.

2. After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $665,753 and Allowance for Doubtful Accounts has a balance of $24,773. What is the net realizable value of the accounts receivable?

a. $24,773

b. $690,526

c. $665,753

d. $640,980

3.Allowance for Doubtful Accounts has a debit balance of $326 at the end of the year (before adjustment), and Bad Debt Expense is estimated at 4% of sales. If net sales are $909,100, the amount of the adjusting entry to record the estimate of the uncollectible accounts is

a. $36,038

b. $36,364

c. $326

d. $36,690

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Psychology
1.2K views

The use of illegal substances in professional sports. 2-3 page essay with 2 sources

Biology
1.2K views

Record the number of cells in each phase of the cell cycle in the table...

Geometry
1.2K views

Write the equation of the line that is parallel to the line y = -7+...

Basic Math
1.2K views

Darlena has started taking photos at amateur dog racing events later offering the photos for...

Calculus
1.2K views

Find the producers surplus at a price level of p 58 for the price supply...

Algebra
1.2K views

A hoagie consists of a roll one type of meat one type of cheese and...

Accounting
1.2K views

Phoenix Company is considering investments in projects C1 and C2. Both require an initial investment...

Accounting
1.2K views

The GAP Partnership has decided to liquidate at December 31.2019. The capital and loan balances...

Accounting
1.2K views

(d) Assume the straight-line method is used. What amount of gain or loss...

Accounting
1.2K views

You are performing the year-end audit of Presto's first financial statements reflecting ASC 842 (Leases)....

Finance
1.2K views

Apple has a bond outstanding with an annual coupon rate of 4.2% and a face...

Finance
1.2K views

Please feel free to show the solutions; I would like to be able to study...