51) The allowance for uncollectible accounts is an expense on the income statements. 52) Bad debts expense is a contra-asset account on the balance sheet. 53) A positive balance in the allowance...

51) The allowance for uncollectible accounts is an expense on the income statements.

52) Bad debts expense is a contra-asset account on the balance sheet.

53) A positive balance in the allowance for uncollectible accounts before an adjusting entry for bad debts expense is recorded means management understated its bad debts expense in the prior period.

54) The allowance method is preferred over the direct write-off method because it better matches the expense of bad debts in the same period as the related sale.

55) Bad debts on the income statement will always equal the balance in the allowance for uncollectible accounts on the balance sheet.