What are the double entries to record bad debt?

• dr. Bad Debt, cr. Allowance for Doubtful Debts

• dr. Profit and Loss, cr. Bad Debt

• dr. Bad debt, cr. Profit and Loss

• dr. Bad debt, cr. Accounts Receivable

The double entries to record an increase in allowance for bad debts are?

• dr. Accounts Receivables, cr. Allowance for doubtful debts

• dr. Bad debt, cr. Allowance for doubtful debts

• dr. Allowance for bad debt, cr. Accounts Receivables

• dr. Allowance for doubtful debts, cr. Bad debt

Bad debts can be classified as:

• a current asset

• a current liability

• an expense

• a revenue

% of provision X ending balance of Accounts Receivable = ?

• beginning balance of Bad Debt Expense

• beginning balance of Allowance for Doubtful Debts

• Bad Debt Expense

• ending balance of Allowance for Doubtful Debts

Bad Debts Recovery is the account to be credited when the uncollectible amount that has been confirmed as Bad Debts suddenly can be collected.

• True

• False

Two methods of accounting for uncollectible accounts are the

• allowance method and the accrual method.

• direct write-off method and the accrual method.

• direct write-off method and the allowance method.

• allowance method and the net realizable method.

The journal entry for recording accounts receivable is:

• Dr. Sales; Cr. Accounts Receivable

• Dr. Accounts Receivable: Cr. Sales

• Dr. Cash; Cr. Sales

• Dr. Sales; Cr. Accounts Payable

Beginning inventory plus the cost of goods purchased equals

• cost of goods sold.

• cost of goods available for sale.

• net purchases.

• total goods purchased.

If a company is experiencing continuous cost increases for the merchandise that it purchases, which costing method assumption will result in the least amount of profit and the least amount of income tax expense?

• LIFO

• FIFO

• Weighted Average

The inventory system that does NOT update the Inventory account automatically at the time of each purchase or sales is the _______________ system.

• periodic

• perpetual