Answer the following statements true (T) or false (F)
1. When using the aging method, the amount calculated to be the uncollectible accounts is always the amount used for the adjusting entry at the end of the period.
2. There are two methods for accounting for uncollectible receivables.
3. The percent of sales method of accounting for uncollectible accounts is also called the balance sheet approach.
4. Sassafras, Inc. uses the allowance method to account for uncollectible accounts. If the Allowance for Doubtful Accounts has a $1,150 credit balance and the company estimates that $6,650 of accounts will be uncollectible based on an aging of Accounts Receivable, then the journal entry will include a credit to Allowance for Doubtful Accounts for $7,800.
5. Accounts Receivable are reported at current market value in the Current Assets sections of the Balance Sheet.
1. FALSE
2. TRUE
3. FALSE
4. FALSE Explanation: estimated uncollectible amount - credit balance = adjustment amount; ex: $6,650 - $1,150 = $5,500, so false
5. FALSE
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The employees at Foster Center acknowledge that their supervisor is excellent at his work and that he has received many accolades during his 40-year career. However, they claim he is a dysfunctional manager. When confronted, the supervisor argues that his work should speak for itself and the employees' opinions of his behavior are irrelevant. Which statement, if true, would support the employees' claim?
A. The employees require this style of supervision because it keeps them focused. B. The supervisor feels that his behavior is normal and necessary to keep the team grounded. C. The employees are consistently recognized for performing their very best in challenging tasks, and they owe their success to their supervisor. D. The supervisor often discourages employees from challenging tasks, saying that they are incapable of accomplishing them. E. The supervisor believes that keeping a distance from his employees will create a sense of fear in them.
The costs associated with coupons and rebates are usually reflected in contra-revenue accounts
Indicate whether the statement is true or false
How should employees be motivated so open-book management will succeed?
It is only humans that produce information.
Answer the following statement true (T) or false (F)