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Unformatted text preview: 4. When the allowance method of recognizing bad debt expense is used, the entry to record bad debt expense at the end of period would 1. decrease the accounts receivable balance and decrease net income. 2. has no effect on asset balance. 3. have no effect on net income. 4. increase the accounts receivable balance and increase net income. 5. A method of estimating bad debts that focuses on the balance sheet rather than the income statement is the allowance method based on 1. direct write-off. 2. aging the receivable accounts. 3. credit sales. 4. specific accounts determined to be uncollectible. 6.The entry Accounts Receivable xxx Allowance for Uncollectible Accounts xxx would be made when 1. a customer pays its account balance. 2. a customer defaults on its account. 3 a previously defaulted customer pays its outstanding balance. 4. estimated uncollectible receivables are too low....
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This note was uploaded on 12/07/2009 for the course ACCT ACCT 203 taught by Professor Kim during the Fall '09 term at HKUST.
- Fall '09