When Evaluating the Collectability of Accounts Receivable

question 67

Multiple Choice

When evaluating the collectability of accounts receivable:

• A)the Uncollectible-Account Expense is a contra account.
• B)the Allowance for Uncollectible Accounts is an operating expense in the selling,general and administrative category.
• C)the allowance method uses estimates developed from the company's collection experience.
• D)the direct write-off method uses the Allowance for Uncollectible Accounts to record bad debts.