An alternative name for Bad Debt Expense is
A) collection expense
B) credit loss expense
C) uncollectible accounts expense
D) deadbeat expense

Question

Quizplus · Accepted Answer

Bad Debt Expense is also known as Uncollectible Accounts Expense because it represents the amounts that a company does not expect to collect from its customers. This expense is incurred when the company writes-off its accounts receivables as uncollectible. Option A, B, and D are not appropriate alternative names for Bad Debt Expense. Collection Expense refers to the cost incurred to collect outstanding debts, Credit Loss Expense refers to losses incurred due to a decline in the value of securities, and Deadbeat Expense is not a recognized accounting term.

An Alternative Name for Bad Debt Expense Is