37. The Allowance for Doubtful Accounts A. B. is a contra-revenue account. has a

Question

37. The Allowance for Doubtful Accounts A. B. is a contra-revenue account. has a normal debit balance. is used for the direct write-off method. C. D. is reported on the Income Statement as a reduction to Bad Debt Expense. is reflected in the asset section of the balance sheet. E. 38. The direct write-off method is not allowed under GAAP because it violates the: A. sales method. B. cost principle. C. expense recognition ("matching") principle. D. revenue recognition principle 39. Under the direct write-eff method, what journal entry is made at the time an account has been deemed uncollectible? A. B. C. D. Debit Allowance for Doubtful Accounts, credit Accounts Receivable Debit Accounts Receivable, credit Bad Debt Expense Debit Bad Debt Expense, credit Allowance for Doubtful Accounts Debit Bad Debt Expense, credit Accounts Receivable note, the borrower sends a check that includes the 40. On the maturity date of a $9,000, 6-month, 12% principal and all of the interest due on the note. What is the amount of the borrower's check A. $10,080 B. $9,540 C. $9,000 D. $15,480

Explanation / Answer

37. Allowance for Doubtful Assets ia a Contra Asset Account having credit balance shown in the assets side of the balance sheet as a deduction from Accounts Receivable.

Answer E

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