Bad Debts expense is debited and Accounts Receivable is credited at the end of the period to recognize bad debts under the allowance method.

Name: Bad Debts expense is debited and Accounts Receivable is credited at the end of the period to recognize bad debts under the allowance method.
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Question

Quizplus · Accepted Answer

Under the allowance method, Bad Debts Expense is debited and Allowance for Doubtful Accounts is credited, not Accounts Receivable.

Bad Debts Expense Is Debited and Accounts Receivable Is Credited