Match the terms with the definitions.
-A technique that attempts to recognize bad debt expense in the same period that the related credit sales are made.
A)aging the receivables
B)allowance method
C)bad debt expense
D)direct write-off method
E)matching principle
F)net receivables
G)percentage of receivables method
H)percentage of sales method

Question

Quizplus · Accepted Answer

The allowance method is a technique that estimates and matches bad debt expense to the same period as the related credit sales, aligning with the matching principle.

Match the Terms with the Definitions