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Unit 3 Practice for Review - Notes Receivable and Accounts...

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Unit 3 Practice for Review

Unit 3 Practice for Review - Notes Receivable and Accounts...

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Notes Receivable and Accounts Receivable can also be called trade receivables. (Points: 1) True False 2. Receivables from company owners and officers should be disclosed separately on the balance sheet. (Points: 1) True False 3. Other receivables include non trade receivables such as loans to company officers. (Points: 1) True False 4. When companies sell their receivables to other companies, the transaction is called factoring (Points: 1) True False 5. Of the two methods of accounting for uncollectible receivables, the allowance method provides in advance for uncollectible receivables. (Points: 1) True False 6. Generally accepted accounting principles do not normally allow the use of the direct write-off method of accounting for uncollectible accounts. (Points: 1) True False 7. The direct write-off method records Bad Debt Expense in the year the specific account receivable is determined to be uncollectible. (Points: 1) True False 8. Allowance for Doubtful Accounts is debited under the direct write-off method when an account is determined to be uncollectible. (Points: 1) True False
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9. Under the direct write-off method, no attempt is made to match Bad Debt Expense to Sales Revenue in
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