A primary advantage of the allowance method to account for bad debts is that it supports the matching principle.

Question

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The allowance method allows for an estimate of bad debts to be recorded in the same period as the related credit sales, which supports the matching principle of accounting. This ensures that expenses (bad debts) are recognized in the same period as the revenue (credit sales) to accurately reflect the financial performance of the company.

A Primary Advantage of the Allowance Method to Account for Bad