C a. 1. Multiple Choice Questions: choose the one that best completes the statement or answers the question. Please fill your answers on PAGE 2. (8 points) 1. Parrott Company sold goods for $800 on account. The journal entry to record the recognition of revenue would include a. A debit to cash of $800. b. A debit to sales revenue of $800. A credit to sales revenue of $800. d. A credit to accounts receivable of $800. 2. Customers who do NOT pay for the merchandise that they bought on credit are referred to as a. Delinquent accounts b. Bad debts c. Unpaid transactions d. Lost sales revenue 3. The direct write-off method of accounting for bad debts Often fails to match bad debt losses with sales for the same period b. Is subject to a significant amount of estimation error Causes accounts receivable to appear on the balance sheet at their estimated net realizable value d. Requires that losses from bad debts be recorded in the period in which sales are made 4. When the allowance method of recognizing bad debt expense is used, the entry to record the write-off of a specific uncollectible account would decrease a Allowance for doubtful accounts b. Net income c. Net realizable value of accounts receivable d. Bad debt expense 5. The existing balance in Allowance for Doubtful Accounts is ignored when which estimation method is used? a. Percentage of receivables method b. Percentage of sales method c. Aging method d. All of these estimations c