Question: Question 7 a: The journal entry to record the write off of an account receivable of $500 would include ________. a a debit to Allowance

Question 7 a: The journal entry to record the write off of an account receivable of $500 would include ________.

a a debit to Allowance for Bad Debts for $500
b a credit to Allowance for Bad Debts for $500
c a debit to Bad Debts Expense for $500
d a credit to Bad Debts Expense for $500
e None of the above

b: Which of the following is the correct way to estimate the uncollectible allowance based on the percentage-of-sales method?

a The percentage of uncollectible accounts receivable to total outstanding accounts receivable.
b The percentage of total outstanding accounts receivable to total sales.
c The percentage of total sales to credit sales.
d The percentage of uncollectible accounts receivable to total sales

c: Which of the following statements is true regarding the discounting of a note receivable?

a Discounting occurs when a note receivable is transferred to a financial institution in order to obtain immediate cash.
b When selling a note receivable, financial institutions value the sale at the amount of the note's maturity value minus a financing fee discount
c If the note receivable is sold before the midpoint of its maturity term, the buyer receives a discount on the sale price.
d both A and B

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