Reference no: EM132813391

Problem 1: The advantage of relating an entity's bad debts experience to its accounts receivable is that this approach

a. Gives a reasonably correct measurement of accounts receivable in the statement of financial position

b. Related bad debts loss to the period of sales

c. Is the only generally accepted method for measuring accounts receivable

d. Makes estimates of uncollectible accounts necessary

Problem 2: When the allowance method of recognizing doubtful accounts is used, the entry to record the write-off of a specific account would

a. Decrease both accounts receivable and the allowance for doubtful accounts

b. Decrease accounts receivable and increase allowance for doubtful accounts

c. Increase both accounts receivable and the allowance for doubtful accounts

d. Increase accounts receivable and decrease the allowance for doubtful accounts