When the allowance method is used to account for uncollectible accounts, Bad Debts Expense is debited when
A)a sale is made.
B)an account becomes uncollectible and is written off.
C)management estimates the amount of uncollectible accounts.
D)a customer's account becomes past due.

Question

Quizplus · Accepted Answer

The allowance method involves estimating uncollectible accounts at the end of each period and recording Bad Debts Expense based on this estimation, not when a specific account is identified as uncollectible or at the time of sale.

When the Allowance Method Is Used to Account for Uncollectible