Collection of accounts receivable that previously have been written off are cred
ID: 2490309 • Letter: C
Question
Collection of accounts receivable that previously have been written off are credited to: A. a gain account. B. Acount receivable, C. Bad debt expense. D. Retained Earnings
The direct write-off method is an acceptable method for what purpose? A. Issuing financial statements to stocker. B. Tax reporting, C Compliance with Generally Accepted Accounting Principles. D. Financial reporting
Which of the following is recorded by credit to Accounts Receivable? A. Sale of inventory on account. B. Estimating the annual allowance for uncollectible accounts. C. Estimating annual sales return. D. Write off of bad debts?
Explanation / Answer
Answer
Collection of accounts receivable that previously have been written off are credited to:
Answer : B. Account receivable
The direct write-off method is an acceptable method for what purpose?
Answer : B. Tax reporting
Explanation: It is the only bad debt write-off method allowed in the tax code applicable to most US firms. It is also called direct charge-off method.
Which of the following is recorded by credit to Accounts Receivable?
Answer : D. Write off of bad debts