6. When does an account become uncollectible?

6. When does an account become uncollectible? A. when the debtor fails to pay an account according to a sales contract b. when the debtor fails to pay a note on the due date c. there is no general rule for when an account becomes uncollectible d. at the end of the fiscal year e. upon receipt of a certified letter from the debtor ANS: C DIF: Easy OBJ: 09-02 NAT: AACSB Analytic | AICPA FN-Measurement 7. The type of account and normal balance of Allowance for Doubtful Accounts is a. contra asset, credit b. asset, debit c. liability, credit d. expense, debit e. expense, credit ANS: A DIF: Easy OBJ: 09-02 NAT: AACSB Analytic | AICPA FN-Measurement 8. The two methods of accounting for uncollectible receivables are the allowance method and the a. equity method b. direct write-off method c. interest method d. cost method ANS: B DIF: Easy OBJ: 09-02 NAT: AACSB Analytic | AICPA FN-Measurement 9. The direct write-off method of accounting for uncollectible accounts a. emphasizes balance sheet rel