115.Indicate whether each of the following statements is true or false assuming use of the allowance method of accounting for uncollectible accounts._____ a) The Allowance for Doubtful Accounts is an...

115.Indicate whether each of the following statements is true or false assuming use of the allowance method of accounting for uncollectible accounts.


_____ a) The Allowance for Doubtful Accounts is an expense account.
_____ b) The net realizable value of receivables is the difference between the ending balance of accounts receivable and the ending balance in the allowance for doubtful accounts.
_____ c) The recognition of uncollectible accounts expense at the end of an accounting period does not affect the net realizable value of accounts receivable.
_____ d) The write-off of an uncollectible account does not affect the net realizable value of accounts receivable.
_____ e) The write-off of an uncollectible account does not affect the amount of a company's equity.

116.Indicate whether each of the following statements is true or false.


_____ a) Most companies do not expect to receive the full face value of their receivables.
_____ b) The estimated amount of uncollectible accounts is called the net realizable value.
_____ c) The direct write-off method of accounting for uncollectible accounts requires the computation of the net realizable value of accounts receivable.
_____ d) The practice of reporting the net realizable value of receivables is commonly called the allowance method of accounting for uncollectible accounts.
_____ e) The materiality principle requires the computation of net realizable value for a company's liabilities.