Under the allowance method for uncollectible accounts, Bad Debts Expense is recorded
A)in the year after the credit sale is made.
B)in the same year as the credit sale.
C)as each credit sale is made.
D)when an account is written off as uncollectible.

Question

Quizplus · Accepted Answer

Under the allowance method, Bad Debts Expense is recorded in the same year as the credit sale to match expenses with revenues in the period in which they are incurred, adhering to the matching principle of accounting.

Under the Allowance Method for Uncollectible Accounts, Bad Debts Expense