The direct write-off method Multiple Choice 0 results in higher bad debt expense for most companies. 0 none of the other alternatives are correct 0 is an acceptable alternative method of recognizing bad debt expense under GAAP. 0 may only be used by companies that do not extend credit to their customers. 5.5 ignores the matching principle. Which of the following statement is false when making a comparison between the Direct Write Off Method and the Allowance Method? Multiple Choice 0 There are two methods to use with the Allowance method: Aging and Percentage of Sales. H. None of the other alternatives are correct The Direct Write Off Method should be used when bad debts are typically negligible at an organization. A specific accounts receivable account may be written off under either method. 0 The Direct Write Off Method violates the matching principle. Harvest Company has the following December 31 General Ledger Account Balances after adjustments relating to Sales and Receivables: Sales $21,500 (of which 40% are credit sales still outstanding) Sales returns and Allowances $1,000 Miscellaneous Receivables $1,212 Allowance for Doubtful Accounts $1,502 Long term Receivables $9,014 Advances to Shareholders and Directors $3,958 Notes Receivables $2,903 (Current Portion) Bad Debt Expense is estimated as 4% of credit sales Required 1: Assuming no other transaction happened, what is the Bad Debt Expense reported on Decmber 31st? $ 344 a Required 2: Assuming no other transaction happened, what is the adjusted net balance of all current Receivables at December 31st? $ 11,213 0 Required 3: Assuming no other transaction happened, what is the adjusted net balance of Accounts Receivables at December 31st? $ 7,098 0