When the allowance method is used to account for uncollectible accounts, Bad Debts Expense is debited when
A)a sale is made.
B)an account becomes bad and is written off.
C)management estimates the amount of uncollectible accounts.
D)a customer's account becomes past due.

Question

Quizplus · Accepted Answer

Under the allowance method, Bad Debts Expense is debited when management estimates the amount of uncollectible accounts, not when specific accounts are written off or become past due.

When the Allowance Method Is Used to Account for Uncollectible