True or False. Under the allowance method, when a company records bad debt expense at the end of the year, it causes the Net Realizable Value of their accounts receivable to increase.

False

Explanation:

According to the allowance method

Net realizable value is

= Gross realizable value - allowance for doubtful debts

As if we record the bad debt expense so it would increased the allowance that reduced the balances of the net realizable value of the account receivable

Hence, the given statement is false

And, the same is to be considered

urban company reports the following information regarding its production cost: units produced 37,000 units direct labor $ 30 per unit direct materials $ 35 per unit variable overhead $ 237,000 in total fixed overhead $ 127,000 in total

since the options are not listed, when you are working on your budget you should also add water, tv, internet, miscellaneous and your 'fun' money for in your budget. when budgeting, you need to allow for fun money, and mis/accidental money so that you stick to the budget and not go crazy because you feel strapped to the budget.