11.For a company that uses the allowance method, the write-off of an uncollectible account receivable is an asset use transaction.
12.When an uncollectible account receivable is written off, the amount of total assets is unchanged.
13.When a company receives payment from a customer whose account was previously written off, the customer's account should be reinstated.
14.When a customer's account, previously written off as uncollectible, is reinstated, the net realizable value of Accounts Receivable increases.
15.The adjusting entry to recognize uncollectible accounts expense is an asset use transaction.
16.The adjusting entry to recognize uncollectible accounts expense does not affect the net realizable value of receivables.
17.If a company estimates uncollectible accounts based on a percentage of receivables, the resulting estimate will show up on the balance sheet as the ending balance in Allowance for Doubtful Accounts.
18.The longer an account receivable has been outstanding, the less likely it is to be collected.
19.If a company uses the percent of receivables method to estimate uncollectible accounts, the company will first determine the required ending balance in Allowance for Doubtful Accounts, and Uncollectible Accounts Expense will be the difference between that amount and the current balance in the allowance.
20.A company that uses the direct write-off method of accounting for uncollectible accounts must still prepare a year-end adjusting entry to estimate its uncollectibles.