contestada

Using the allowance method, Bad Debt Expense is recorded _____.

a. as an estimate in the period of the related credit sales
b. when the company defaults on its Notes Payable
c. when the specific customer is known to be uncollectible
d. when a company writes off its uncollectible receivables

Respuesta :

Martebi

Using the allowance method, Bad Debt Expense is recorded when a company writes off its uncollectible receivables.

When do one use the allowance method as bad debt expense?

For a person to use the allowance method, one have to record bad debts as a kind of contra asset account.

That is, a type of an account that is said to have a zero or negative balance that is seen on your balance sheet. In this scenario, one would debit the bad debt expense and credit your allowance for bad debts.

Learn more about allowance method from

https://brainly.com/question/6993526

Otras preguntas