When using the allowance method to account for uncollectible accounts receivable,companies estimate bad debt expense at the end of the period and then record an adjusting entry.

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This is the correct process for using the allowance method. Companies estimate bad debt expense based on historical data or other factors, record it at the end of the period, and then adjust their allowance account accordingly. This helps to account for the possibility of customers not paying their bills, and ensures that the company's financial statements reflect a more accurate picture of their accounts receivable.

When Using the Allowance Method to Account for Uncollectible Accounts