Estimating Bad Debts Expense is an example of:
A)recording accrued expense.
B)the matching principle.
C)the balance sheet approach.
D)recording accrued sales.

Question

Quizplus · Accepted Answer

Estimating Bad Debts Expense is an example of applying the matching principle, which requires expenses to be recognized in the same period as the associated revenues. This means that bad debts expense should be recorded in the period that the related sales were made, even if the actual bad debts become evident at a later date.

Estimating Bad Debts Expense Is an Example Of