When Using the Percent of Sales Method of Estimating Uncollectibles

question 10

True/False

When using the percent of sales method of estimating uncollectibles, the entry to record bad debt expense includes a credit to Accounts Receivable.

---

Definitions:

Cathode

An electrode through which electrons move outwards in a circuit; often associated with the reduction process in electrochemical reactions.

Electrolyte

A chemical compound that, when melted or dissolved in water or another solvent, dissociates into ions and becomes capable of conducting electricity.

Rectification

The process of converting alternating current (AC) to direct current (DC) using diodes or other rectifying devices.

Direct Current

Electrical current that flows only from zero to positive and does not alternate negative and positive as AC does; the type of current created by the use of a battery.