17.An account becomes uncollectible a.when an account receivable is converted in

Question

17.An account becomes uncollectible

a.when an account receivable is converted into a note receivable

b.There is no general rule for when an account becomes uncollectible.

c.when a discount is availed on notes receivable

d.at the end of the fiscal year

18.At the beginning of the year, the balance in Allowance for Doubtful Accounts is a credit of $760. During the year, previously written off accounts of $120 are reinstated and accounts totaling $740 are written off as uncollectible. The end-of-year balance (before adjustment) in Allowance for Doubtful Accounts should be

a.$140

b.$740

c.$760

d.$120

Explanation / Answer

17 There is no general rule for when an account becomes uncollectible. Option B is correct 18 Balance in Allowance for Doubtful Accounts=760+120-740= 140 Option A is correct

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