101. The percent of revenue method for estimating uncollectible accounts expense is considered superior to the percent of receivables method because it is more conservative.
102. Willis Company had $200,000 in credit sales for 2016, and it estimated that 2% of the credit sales would not be collected. The balance in Accounts Receivable at the end of the year was $38,000. Willis had never used the allowance method to account for its receivables till 2016. The net realizable value of its accounts receivable at the end of the year was $34,000.
103. The net realizable value of accounts receivable decreases when an account receivable is written off.
104. For a company that uses the allowance method, the write-off of an uncollectible account receivable is an asset use transaction.
105. When an uncollectible account receivable is written off, the amount of total assets is unchanged.
106. When a company receives payment from a customer whose account was previously written off, the customer's account should be reinstated.
107. When a customer's account, previously written off as uncollectible, is reinstated, the net realizable value of Accounts Receivable increases.
108. The adjusting entry to recognize uncollectible accounts expense is an asset use transaction.
109. The adjusting entry to recognize uncollectible accounts expense does not affect the net realizable value of receivables.
110. If a company estimates uncollectible accounts based on a percentage of receivables, the resulting estimate will be presented on the balance sheet as the ending balance in Allowance for Doubtful Accounts.