Q1: What are balance-day adjustments?
Q2: What are ‘bad debts’?
Q3: What two methods can we use to ‘write-off’ bad debts periodically?
Q4: Describe the allowance method.
Q5: What are two ways we can estimate bad debts when using the allowance method?
Q6: Describe the direct write-off method.
Q7: What are the journal entries when we recognise a bad debt under the direct write-off method?
Q8: What are the journal entries when we recognise a bad debt under the allowance method?
Q9: What are ‘closing entries’?
Q10: What are ‘reversing entries’?