ACCTG101 Midterm Activity 3

The normal balance of accounts receivable is

• Debit

• Credit

The normal balance of allowance for doubtful accounts is

• Debit

• Credit

Doubtful accounts expense is recorded as a

• Debit

• Credit

If an account is written off under the direct write off method, accounts receivable is

• Increased

• Decreased

• Not affected

If an account is written off under the allowance method, the balance of the accounts receivable account is

• Increased

• Decreased

• Not affected

If an account is written off under the direct write off method, carrying amount of the accounts receivable is

• Increased

• Decreased

• Not affected

If an account is written off under the allowance method, the carrying amount of the accounts receivable is

• Increased

• Decreased

• Not affected

Which method of recording bad debt loss in consistent with matching principle?

• Allowance method

• Direct write-off method

Which method of recording bad debt loss in consistent with accrual accounting?

• Allowance method

• Direct write-off method

When the allowance method of recognizing uncollectible accounts is used, the entry to record the write off of a special account would

• Decrease both accounts receivable and the allowance for uncollectible accounts.

• Decrease accounts receivable and increase allowance for uncollectible accounts.

• Increase the allowance for uncollectible accounts and decrease net income.

• Decrease both accounts receivable and net income