When the allowance method of accounting for uncollectible accounts is used Bad Debt Expense is recorded
A) in the year after the credit sale is made.
B) in the same year as the credit sale.
C) as each credit sale is made.
D) when an account is written off as uncollectible.

Question

Quizplus · Accepted Answer

The allowance method records Bad Debt Expense in the same year as the credit sale to match expenses with revenues, adhering to the matching principle of accounting.

When the Allowance Method of Accounting for Uncollectible Accounts Is