Under the allowance method of accounting for uncollectible accounts, Bad Debts Expense is debited
A) when a credit sale is past due.
B) at the end of each accounting period.
C) whenever a pre-determined amount of credit sales have been made.
D) when an account is determined to be uncollectible.

Question

Quizplus · Accepted Answer

Under the allowance method, Bad Debts Expense is recorded at the end of each accounting period to estimate uncollectible accounts, rather than when specific accounts are deemed uncollectible.

Under the Allowance Method of Accounting for Uncollectible Accounts, Bad