G. True/False
Instructions: Place a T or F in the Blank
	1. Notes receivable and accounts receivables can also be called trade receivables.
	2. Receivables from company owners and officers should be disclosed separately on the balance sheet.
	3. Receivables not currently collectible are reported in the investments section of the balance sheet.
	4. Since those responsible for receivables record keeping and credit approval do not handle cash, these
	duties do not need to be separated to maintain good internal control.
	5. Maintaining the Accounts Receivable control account and the Accounts Receivable Subsidiary Ledger
	should be assigned to the same employee for good internal control.
	6. When companies sell their receivables to other companies, the transaction is called factoring
	7. Of the two methods of accounting for uncollectible receivables, the allowance method provides in
	advance for uncollectible receivables.
	8. When the estimate based on analysis of receivables is used, income is reduced when a specific
	receivable is written off.
	9. When an account receivable that has been written off is subsequently collected, the account
	receivable is reinstated.
	10. Although Allowance for Doubtful Accounts normally has a credit balance, it may have either a debit
	or a credit balance before adjusting entries are recorded at the end of the accounting period.
	11. At the end of a period, before the accounts are adjusted, Allowance for Doubtful Accounts has a
	credit balance of $250, and net sales on account for the period total $500,000. If Bad Debts
	Expense is estimated at 1% of net sales on account, the current provision to be made for
	Bad Debts Expense is $4,750.
	12. At the end of a period, before the accounts are adjusted, Allowance for Doubtful Accounts has a
	debit balance of $500, and net sales on account for the period total $800,000. If Bad Debts
	Expense is estimated at 1% of net sales on account, the current provision to be made for
	Bad Debts Expense is $8,500.
	13. Allowance for Doubtful Accounts is a liability account.
	14. At the end of a period, before the accounts are adjusted, Allowance for Doubtful Accounts has a
	debit balance of $2,000. If the estimate of uncollectible accounts determined by aging the
	receivables is $30,000, the current provision to be made for Bad Debts Expense is $30,000.
	15. At the end of a period, before the accounts are adjusted, Allowance for Doubtful Accounts has a
	credit balance of $5,000. If the estimate of uncollectible accounts determined by aging the
	receivables is $50,000, the current provision to be made for Bad Debts Expense is $45,000.
	16. The difference between Accounts Receivable and its contra asset account is called net realizable value.
	17. The estimate based on sales method violates the matching concept.
	18. Allowance for Doubtful Accounts is a liability account.