Answer the following statements true (T) or false (F)
1) Bad Debt Expense is not debited when a company writes off an account receivable when using the allowance method because the company has already recorded the Bad Debt Expense as an adjusting entry.
2) The entry to write off an account under the allowance method affects net income at the time of entry.
3) When using the allowance method, Allowance for Bad Debts is debited when an account receivable is written off.
4) Under the allowance method, the entry to write off a receivable increases the amount of the Allowance for Bad Debts account.
1) TRUE
2) FALSE - The entry to write off an account under the allowance method has no effect on net income at the time of entry.
3) TRUE
4) FALSE - The entry to write off a receivable decreases the amount of the Allowance for Bad Debts account.
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