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Which method of estimating uncollectible receivables focuses on Uncollectible-account expense for the income statement?
The percent of sales method
If the allowance method of accounting for uncollectible receivables is used what general ledger account is credited to write off a customer's account as uncollectible?
Allowance for Doubtful Accounts
Which account shows the amount of accounts receivable that a company does not expect to collect?
Allowance for Uncollectible Accounts
What does it mean when an account is long outstanding difficult to collect the amount or it should be internally adjusted?
The account is considered an uncollectible account. The account must be adjusted so that the business can balance its books.
Allowance for Doubtful Accounts is debited under the direct write-off method when an account is determined to be uncollectible True or False?
true
Which method of estimating uncollectible receivables focuses on Uncollectible-account expense for the income statement?
The percent of sales method
If the allowance method of accounting for uncollectible receivables is used what general ledger account is credited to write off a customer's account as uncollectible?
Allowance for Doubtful Accounts
When should the loss an uncollectible account receivable be recorded as an expense for accrual accounting purposes?
In the same period in which the sale on account occurs.
Which account shows the amount of accounts receivable that a company does not expect to collect?
Allowance for Uncollectible Accounts
If the amount of uncollectible account expense is understated at year end?
net Accounts Receivable will be overstated.
What does it mean when an account is long outstanding difficult to collect the amount or it should be internally adjusted?
The account is considered an uncollectible account. The account must be adjusted so that the business can balance its books.
Is bad debt expense account and allowance for uncollectible account is same account?
Bad debt expense account is the actual expense account for bad debts while allowance for doubtful account is the provision for account in case of any bad debts occurs in future.
How do you keep selling to the customer about to go bankruptcy without getting uncollectible account receivable?
If he hasn't filed yet..only by COD
Allowance for Doubtful Accounts is debited under the direct write-off method when an account is determined to be uncollectible True or False?
true
How do you set up the allowance for doubtful accounts?
Allowance for doubtful account is set up based on past experiance of uncollectibility of account receivable. There are two approach in calculating it. firstly based on net credit sales which calculate how much % of net credit sales in the past became uncollectible. secondly based on Account receivable balance which calculate how much % of AR balnce became uncollectible. the asumption here is what happened in the past wil occure repeatly in the future. normally companies using aging schedule. But it is better to use credit rating of our customer to estimate the uncolletible account.
The direct write off method records uncollectible accounts expense in the year the specific accounts receivable is determined to be uncollectible is this true or false?
t
What is the meaning of uncollectible accounts?
Uncollectible accounts refer to accounts receivable (money owed to a company by its customers) that are unlikely to be collected. These are typically debts that have become delinquent and the company has determined that collecting the payment is not feasible. The company may choose to write off these accounts as bad debt and remove them from its books.
