CH. 9 - Receivables

Question 1

Current Expected Credit Loss (CECL)

Answer 1

Allowance for Credit Losses (A Contra-Account to Receivables) to reflect total estimate of expected credit losses.

Question 2

Journal Entry for Credit Loss + Allowance for Credit Losses

Answer 2

Credit Loss Expense (Dr.)

Allowance for Credit Losses (Cr.)

Question 3

When recording a noninterest bearing note receivable (N/R), if the FMV of the goods or the N/R is not known, the __________________________.

Answer 3

present value of the future payments is used.

Question 4

Under the _____________________, credit losses are recorded when a specific account receivable is deemed uncollectible and written off.

Answer 4

direct write-off method