6. Which of the following statements is false? a. Any existing balance in the Al
ID: 2474809 • Letter: 6
Question
6. Which of the following statements is false?
a. Any existing balance in the Allowance for Uncollectible Accounts is ignored in calculating the uncollectible accounts expense under the percentage-of-sales method except that the allowance account must have a credit balance after adjustment.
b. The percentage-of-receivables method may use either an overall rate or a different rate for each age category.
c. The Allowance for Uncollectible Accounts reduces accounts receivable to their net realizable value.
d. A write-off of an account reduces the net amount shown for accounts receivable on the balance sheet.
e. None of the above.
Explanation / Answer
a. Any existing balance in the Allowance for Uncollectible Accounts is ignored in calculating the uncollectible accounts expense under the percentage-of-sales method except that the allowance account must have a credit balance after adjustment.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.