No attempt is made to estimate bad debts expense under the allowance method of accounting for uncollectible accounts receivable.

Question

Quizplus · Accepted Answer

The allowance method of accounting for uncollectible accounts receivable requires the estimation of bad debts expense based on past experience and other relevant factors. The estimated amount is then recorded as a contra asset in the balance sheet called the allowance for doubtful accounts. Therefore, option B is correct.

No Attempt Is Made to Estimate Bad Debts Expense Under