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Under the allowance method for estimating uncollectible accounts, the entry to write off an account (Points : 6)
has no effect on net realizable value.
decreases both Accounts Receivable and Uncollectible Accounts, thus decreasing net realizable value.
decreases Accounts Receivable, thus decreasing net realizable value.
increases Allowance for Uncollectible Accounts, thus decreasing net realizable value.
Question 2.2. (TCO 6) Net accounts receivable is calculated as (Points : 6)
sales less sales returns and allowances.
accounts receivable plus allowance for uncollectible accounts.
accounts receivable less allowance for uncollectible accounts.
accounts payable plus allowance for uncollectible accounts.
Question 3.3. (TCO 7) Unlike the periodic inventory system, the perpetual inventory system (Points : 6)
does not require a physical count of the ending inventory.
includes only the inventory purchased for cash.
provides a continuous record of inventory on hand.
is not required by GAAP.
Question 4.4. (TCO 7) When the FIFO method is used, ending inventory is assumed to consist of the (Points : 6)
units with the lowest per unit cost.
units with the highest per unit cost.
oldest units.
most recently purchased units.
