The allowance method of accounting for bad debts expense is consistent with the accrual basis of accounting as it matches revenues of one year with expenses of the same year.

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The allowance method of accounting for bad debts expense is consistent with the accrual basis of accounting as it estimates and matches expenses (bad debts) against revenues earned in the same accounting period. This helps in accurately reflecting the company's financial position and results of operations.

The Allowance Method of Accounting for Bad Debts Expense Is