The allowance method for estimating bad debts requires an adjusting entry at the end of the period to reduce receivables to their appropriate carrying value. True or False?

If cash has not yet been collected from a customer, such that an account receivable is outstanding, recognizing estimated sales returns results in recognizing a refund liability. True or False?

The correction for overstating depreciation expense in a prior year includes a prior period adjustment to increase the beginning balance of retained earnings in the current year. True or False?

As a planned depreciation schedule, a company may use double-declining-balance depreciation for approximately the first half of an assets service life and then switch to the straight-line method for the remaining life of the asset. True or False?