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ACC 556 Chapter 8 Quiz (100% Score)
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Chapter 8 Quiz
Question 1
An aging of accounts receivable schedule is based on the premise that
the longer the period an account remains unpaid, the greater the
probability that it will eventually be collected.
Question 2
Allowance for Doubtful Accounts is a contra account that is deducted
from Accounts Receivable on the balance sheet.
Question 3
Under the allowance method, Bad Debt Expense is debited when an
account is deemed uncollectible and must be written off.
Question 4
Interest on a 6-month, 10 percent, $10,000 note is calculated by
multiplying $10,000 ´ 0.10 ´ 6/12.
Question 5