When the allowance method is used to account for uncollectible accounts, Bad Debt Expense is debited when

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Bad Debt Expense is debited when management estimates the amount of uncollectible accounts. This is because the allowance method records an estimate of uncollectible accounts as a debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts. This estimation process takes place at the end of each accounting period, based on past experience and current economic conditions.

When the Allowance Method Is Used to Account for Uncollectible