Reference no: EM132813399

Problem 1: When a specific customer's account receivable is written off as uncollectible, what will be the effect on net income?

a. No effect under both allowance method and direct write off method

b. Decrease under both allowance method and direct write off method

c. No effect under allowance method and decrease under direct write off method

d. Decrease under allowance method and no effect under direct write off method

Problem 2: When an accounts receivable aging schedule is prepared, a series of computations is made to determine the estimated uncollectible accounts. The resulting amount for this aging schedule

a. When added to the total accounts written off during the year is the desired credit balance of the allowance for doubtful accounts at year end

b. Is the amount of doubtful accounts expense for the year

c. Is the amount that should be added to the beginning allowances for doubtful accounts expense for the year

d. Is the amount of desired credit balance of the allowance for doubtful accounts to be reported at year end