Answer True False:
1. The loss from an uncollectible amount is a regular expense of doing business. 

2. Crediting the estimated value of uncollectible accounts to a contra account is the allowance method of recording losses from uncollectible accounts. 

3. The account Allowance for Uncollectible Accounts is increased by a debit. 

4. When the allowance account has a previous credit balance, this previous balance is subtracted from the amount of the adjustment for uncollectible accounts expense. 

5. Accounts receivable that cannot be collected are called uncollectible accounts. 

6. The book value of accounts receivable is an estimate of the amount of accounts receivable the business expects to collect during the next fiscal year. 

7. Using the percentage of total sales on account to estimate uncollectible accounts 

expense assumes that a portion of every sale on account dollar will become uncollectible. 

8. Canceling the balance of a customer account because the customer does not pay is called writing off an account. 

9. Allowance for Uncollectible Accounts is debited to write off a customer account. 

10. When a previously written-off account is collected, Accounts Receivable is debited and credited for the amount collected. 

Chose an option (a, b, c, d): 

1. The loss from an uncollectible account is 

a. a liability. 

b. a regular expense of doing business. 

c. an asset. 

d. a reduction in revenue. 

2. The balance of accounts receivable less the allowance for uncollectible accounts is 

the formula for calculating 

a. uncollectible accounts expense. 

b. book value of accounts receivable. 

c. the contra account balance to accounts receivable. 

d. total collections of previously written-off accounts. 

3. When the allowance account in the Trial Balance column of a work sheet has a credit balance, the amount of the adjustment is 

a. deducted from the trial balance amount. 

b. not recorded. 

c. multiplied by two. 

d. added to the trial balance amount. 

4. Information used to journalize an uncollectible expense adjusting entry is obtained from a work sheet's 

a. Balance Sheet columns. 

b. Income Statement columns. 

c. Adjustments columns. 

d. Trial Balance column. 

5. The entry to journalize the uncollectible accounts expense adjusting entry is debit Uncollectible Accounts Expense and credit 

a. Accounts Receivable. 

b. Cash. 

c. Allowance for Uncollectible Accounts. 

d. none of these. 

6. Writing off an account 

a. decreases the balance of Accounts Receivable. 

b. decreases the balance of Uncollectible Accounts Expense. 

c. increases the balance of Allowance for Uncollectible Accounts. 

d. increases the balance of Cash. 

7. When uncollectible accounts are estimated, writing off an account 

a. increases revenue. 

b. increases expenses. 

c. does not change the book value of accounts receivable. 

d. may increase expenses or decrease revenue. 

8. The entry to write off an account receivable is recorded in the 

a. sales journal. 

b. cash receipts journal. 

c. cash payments journal. 

d. general journal. 

9. The journal entry to write off an account receivable account is debit Allowance for 

Uncollectible Accounts and credit 

a. Cash. 

b. Accounts Receivable. 

c. Uncollectible Accounts Expense. 

d. none of these.