When the allowance method of accounting for uncollectible accounts is used, 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

The allowance method matches bad debt expense to the same period in which the related credit sales occur, adhering to the matching principle.

When the Allowance Method of Accounting for Uncollectible Accounts Is