Which of the following methods of estimating the impairment of receivables does not properly match expense and revenue?

Question

Quizplus · Accepted Answer

Charging bad debts as accounts are written off as uncollectible does not properly match expense and revenue because it delays the recognition of the bad debt expense until the account is deemed uncollectible and written off, which could occur in a later period than when the revenue was recognized. The other methods (A, B, and C) are all based on estimates of the amount of bad debts that will occur in a given period and are designed to match the estimated expense with the revenue recognized in that period.

Which of the Following Methods of Estimating the Impairment of Receivables