With respect to colleges and universities,estimates of uncollectible accounts are accounted for as reductions in revenue rather than bad debt expense.

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Quizplus · Accepted Answer

This is true. The reason for this is that uncollectible accounts are anticipated and estimated beforehand, and therefore, are factored into the revenue recognition process. This approach is consistent with the matching principle in accounting, which requires expenses and revenues to be recognized in the same period to which they relate.

With Respect to Colleges and Universities,estimates of Uncollectible Accounts Are