The direct write-off method of accounting for uncollectibles

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Reference no: EM13298688

1-Which of following is true regarding the direct write-off method of accounting for uncollectibles ?
A. The direct write-off method does not adhere to GAAP.
B. The direct write-off method does not much expenses against revenues very well
C.The direct write-off method does not use an allowance for uncollectible accounts and thus overstates assets on the balance sheet.
D. All of the above

2.Which method of estimating uncollectible receivables focuses on net credit sales?
A. Aging approach
B. Percent -of-sales-approach
C. Net realizable value approach
D. All of above

3.On its books, Somerset Company's Cash account shows an ending balance of $ 770. The bank Statement for the current period shows a $ 16 service change and an NSF check for $120. A $270.deposit is in transit, and outstanding checks total $440. What is Somerset's adjusted book balance for Cash?
A. $1,074
B. $664
C. $634
D. $498

4.Which item(s) appears as a reconciling item(s) to the book balance in bank reconciliation?
A. Outstanding Checks
B. Deposits in transit
C. Both A and B
D.None of the above

Reference no: EM13298688

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