Question 5 25 points Town and Country Saddle learns the acco

Question 5 (2.5 points)

Town and Country Saddle learns the account receivable for a customer is uncollectible. The journal entry under the allowance method to write-off an account is to __________.

Question 5 options:

debit Allowance for Doubtful Accounts; credit Accounts Receivable

debit Sales; credit Allowance for Doubtful Accounts

debit Bad Debts Expense; credit Accounts Receivable

debit Allowance for Doubtful Accounts; credit Bad Debts Expense

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Question 6 (2.5 points)

After having written off a customer under the direct write-off method, the account will be reopened when the customer __________.

Question 6 options:

sends the full amount to pay off the account

sends any amount to pay on their account

pays the collection bureau

none of the above

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Question 7 (2.5 points)

Colleen’s account was written off for $800. She received an inheritance from her uncle and wants to clear her account. The entry to record this is to __________.

Question 7 options:

debit Cash and credit Accounts Receivable/Maggie

debit Allowances for Doubtful Accounts, credit Accounts Receivable/Maggie, debit Cash, and credit Accounts Receivable/Maggie

debit Accounts Receivable/Maggie, credit Allowance for Doubtful Accounts, debit Cash, and credit Accounts Receivable/Maggie

debit Accounts Receivable/Maggie, credit Allowance for Doubtful Accounts, debit Accounts Receivable/Maggie, and credit Cash

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Question 8 (2.5 points)

If the allowance method of accounting for uncollectible receivables is used, what general ledger account is debited to write off a customer’s account as uncollectible?

Question 8 options:

Allowance for Doubtful Accounts

Bad Debt Expense

Accounts Payable

Bad Debts Recovered

Solution

5) Town and Country Saddle learns the account receivable for a customer is uncollectible. The journal entry under the allowance method to write-off an account is to

So answer is a) debit Allowance for Doubtful Accounts; credit Accounts Receivable

6) After having written off a customer under the direct write-off method, the account will be reopened when the customer

So answer is b) sends any amount to pay on their account

7) Colleen’s account was written off for $800. She received an inheritance from her uncle and wants to clear her account. The entry to record this is to

So answer is c) debit Accounts Receivable/Maggie, credit Allowance for Doubtful Accounts, debit Cash, and credit Accounts Receivable/Maggie

8) If the allowance method of accounting for uncollectible receivables is used, what general ledger account is debited to write off a customer’s account as uncollectible

So answer is a) Allowance for doubtful accounts