The journal entry to record bad debt expense is made during the year that it is determined that a particular receivable is uncollectible, regardless of the year of sale.

Question

Quizplus · Accepted Answer

The journal entry to record bad debt expense is typically made in the same year as the sale, using an estimate of uncollectible accounts, to match expenses with revenues in accordance with the matching principle.

The Journal Entry to Record Bad Debt Expense Is Made