The account \"allowance for uncollectible accounts\" is classified as an A. Liab

Question

The account "allowance for uncollectible accounts" is classified as an A. Liability, B. Contra revenue to credit sales in the income statement. C. Expenses in the income statement. D. Contra asset to accounts receivable in the balance sheet

The amount of a company's receivable is influenced by several variables, including all of the following except. A. The level of sales. B. The nature of the product or service sold. C. The credit and collection policies. D. Devidend payments to stockholders.

A____recivable is an informal credit arrangement with trade customers, whereas a ___receivable is a formal signed credit arrangement between a creditor and a debtor. A. Account, note. B. Revenue, note. C. Note, account. D. Allowance, stock

Explanation / Answer

1. The account "allowance for uncollectible accounts" is classified as the Contra Asset account to Current Asset Account Accounts Receivable.

So Correct Option is D. Contra asset to accounts receivable in the balance sheet.

2. The sales level , the credit and collection policies and the nature of product and services( seasonal or uniform sale) all affect the amount of accounts receivable. But the dividend payment to stockholders do not influence the accounts receivable amount. So Correct option is D. Devidend payments to stockholders.

3.A_ Trade ___recivable is an informal credit arrangement with trade customers, whereas a _Note __receivable is a formal signed credit arrangement between  a creditor and a debtor.

So correct option is A. Account, note.

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