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 has been made.
D)when an account is determined to be uncollectible.

Question

Quizplus · Accepted Answer

The allowance method involves estimating uncollectible accounts at the end of each accounting period and recording Bad Debts Expense accordingly to match revenues and expenses in the period in which the revenue was earned.

Under the Allowance Method of Accounting for Uncollectible Accounts, Bad