If the company makes the following journal entry to record bad debt expense, which method of accounting for bad debts is it using? Dr. Bad debt expense$\quad$$\quad$$\quad$ xxx
Cr. Allowance for uncollectible accounts $\quad$xxx

Question

If the company makes the following journal entry to record bad debt expense, which method of accounting for bad debts is it using? Dr. Bad debt expense$\quad$$\quad$$\quad$ xxx
Cr. Allowance for uncollectible accounts $\quad$xxx

Quizplus · Accepted Answer

The journal entry provided is characteristic of the allowance method, where bad debt expense is recorded by increasing (debiting) Bad Debt Expense and increasing (crediting) Allowance for Uncollectible Accounts. This method estimates future uncollectible accounts and records the expense in the same period as the related sales revenue.

If the Company Makes the Following Journal Entry to Record \quad

If the Company Makes the Following Journal Entry to Record $\quad$