1. When a company that uses the allowance method for uncollectible accounts later writes off an account,

a. Bad debt expense will increase.

b. Someone should be terminated because businesses never expect write-offs.

c. The amount for net accounts receivable (accounts receivable less the allowance for doubtful accounts) will stay the same.

d. Sales revenue should be debited.

2. Entity H uses US GAAP and uses the direct method for operating activities in its statement of cash flows. For the following item, indicate on which financial statement, it would appear: Unearned revenues

a. Multi-step income statement

b. Classified balance sheet

c. Retained earnings statement

d. Statement of cash flows

e. Not on any financial statement