1. When direct write off method is used, the journal entry should be DR: accounts receivable and CR: provision for doubtful accounts.

True

False

2.

When the due date of a note is stated in days, the time factor in computing interest is the number of months divided by 360 days.

True

False

3. Current liabilities are expected to be paid within one year.

True

False

4. Provision for Doubtful Accounts is an expense account, and its normal balance is debit.

True

False

5. Gains are recorded on exchanges of long-term assets.

True

False