Under the allowance method, Bad Debt Expense is recorded
A)when an individual account is written off.
B)when the loss amount is known.
C)for an amount that the company estimates it will not collect.
D)several times during the accounting period.

Question

Quizplus · Accepted Answer

Under the allowance method, Bad Debt Expense is recorded based on an estimate of uncollectible accounts, not when specific accounts are written off or when the exact loss is known.

Under the Allowance Method, Bad Debt Expense Is Recorded