Which of the following entries would be used to account for uncollectible receivables using the allowance method?
A)Allowance for uncollectible accounts is debited and Bad debts expense is credited.
B)Bad debts expense is debited and Allowance for uncollectible accounts is credited.
C)Bad debts expense is debited and Accounts receivable is credited.
D)Accounts receivable is debited and Bad debts expense is credited.

Question

Quizplus · Accepted Answer

The allowance method involves estimating uncollectible accounts at the end of each period and recording that estimate with a debit to Bad Debts Expense and a credit to Allowance for Uncollectible Accounts. This method matches the expense to the period in which the revenues related to the expense were earned, adhering to the matching principle of accounting.

Which of the Following Entries Would Be Used to Account