TRUE OR FALSE

5. 6. In the balance sheet, the desired ending balance of the Allowance for Doubtful Accounts is used as a basis for determining Uncollectible Accounts Expense. Using the balance sheet, a write-off of an account during the year would decrease the Uncollectible Accounts Expense that will be recognized as of year-end. The percentage of sales method generally does not consider the beginning balance of the Allowance for Doubtful Accounts in computing for Uncollectible Accounts Expense. A recovery of an account written off in the previous year would reflect an error in the previous year's estimate of Uncollectible Accounts Expense, so that retained earnings should be adjusted. 7. 8