An expense incurred as a result of sales on credit or on account is:
A) Bad Debts Expense
B) Prepaid Rent
C) Insurance Expense
D) Allowance for Doubtful Accounts

Name: An expense incurred as a result of sales on credit or on account is: A) Bad Debts Expense B) Prepaid Rent C) Insurance Expense D) Allowance for Doubtful Accounts
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Question

Quizplus · Accepted Answer

Bad Debts Expense is the cost associated with accounts receivable that are not expected to be collected, which arises from sales made on credit.

An Expense Incurred as a Result of Sales on Credit