Bad Debts Expense should be recorded:
A) whenever an account is written off as uncollectible.
B) each time a credit sale is made.
C) whenever an account written off is recovered.
D) at the end of each accounting period.

Question

Quizplus · Accepted Answer

Bad Debts Expense is typically recorded at the end of each accounting period to adjust the allowance for doubtful accounts to the estimated uncollectible amount, reflecting expected future losses from accounts receivable.

Bad Debts Expense Should Be Recorded