When using the allowance method for bad debts, how should bad debt expense be recorded?

Question

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Bad debt expense should be recorded as an adjusting entry at the end of the accounting period in the allowance method. This entry will establish the necessary amount of allowance for doubtful accounts to be deducted from the accounts receivable in the balance sheet. Choosing option A, recording bad debt expense when a particular account is written off, would result in an inconsistent and unpredictable income statement. Option B, recording bad debt expense whenever the allowance for doubtful accounts has a debit balance, is incorrect because the allowance account might temporarily have a debit balance due to prior-year adjustments or expected future losses. Option D, recording bad debt expense whenever the allowance for doubtful accounts has a zero balance, is incorrect because the company should not wait until the allowance is depleted before accruing bad debt expense.

When Using the Allowance Method for Bad Debts, How Should