CORRECT ANSWER✅ Under the allowance method, UncollectibleAccounts Expense is recorded(a) when an individual account is written off.(b) for a known amount.(c) several times during the accountingperiod.(d) for an estimated amount.

Concept of Allowance Method: The allowance method is an accounting approach used to estimate and…

Answered: Under the allowance method,…

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter14: Accounting For Uncollectible Accounts Receivable

Section14.1: Uncollectible Accounts Receivable

Problem 2AYU

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The collection of an account that had been previously written off under the allowance method of accounting for uncollectible Select one: a. will increase income in the period it is collected. b. does not affect income in the period it is collected. C. will decrease income in the period it is collected. d. requires a correcting entry for the period in which the account was written off.
Using the allowance method, the entry to record a write-off of accounts receivable will include a. A debit to Bad Debt Expense.b. A debit to Allowance for Uncollectible Accounts. c. No entry because an allowance for uncollectible accounts was established in an earlier period. d. A debit to Service Revenue.
When the allowance method for recognizing uncollectible accounts receivable is used, the allowance account will have a positive balance at the end of the period if the write-offs during the period exceed the beginning balance the write-offs are equal to the balance of the account at the beginning of the period the write-offs during the period are less than the beginning balance the write-offs are equal to the difference between the beginning and the ending balance of the account.
Under the allowance method, Bad Debts Expense is recorded a. when an individual account is written off. b. when the loss amount is known. 22. for an amount that the company estimates it will not collect. C. d. several times during the accounting period.
Allowance for Uncollectible Accounts is a contra asset account, which means that its normal balance is a credit. However, it is possible for the account to have a debit balance before year-end adjustments are recorded. Explain how this could happen. How does an accountant calculate the year-end adjustment for Allowance for Uncollectible Accounts with a debit balance before year-end adjustments recorded? Please explain both answers in good detail answer
When an account is written off under the allowance method, there should be a debit to Bad Debt Expense.
Each time an account is written off under the direct write-off method, Bad Debt Expense is debited.
The collection of an account that had been previously written off under the allowance method of accounting for uncollectibles a.does not affect net income in the period it is collected b.will decrease net income in the period it is collected c.requires a correcting entry for the period in which the account was written off d.will increase net income in the period it is collected
On the Balance Sheet, the Allowance for Doubtful Accounts account is: Osubtracted from the Accounts Receivable account. Onone of the answers are correct. is an Expense account and goes on the Income Statement. O added to the Accounts Receivable account.
Provide answers to this problem
When an advance collection of income has been recorded under the liability method, an adjusting entry is needed to recognize the increase in the balance of the real account. O decrease in the balance of the nominal account. earned portion of the precollection O unearned portion of the precollection.
Under the direct write-off method of accounting for uncollectible accounts, Bad Debt Expense is recorded Oa. when a credit sale is past due O b. whenever a predetermined amount of credit sales has been made Oc. when an account is determined to be worthless O d. at the end of each accounting period

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Under the allowance method, Uncollectible Accounts Expense is recorded (a) when an individual account is written off. (b) for a known amount. (c) several times during the accounting period. (d) for an estimated amount.