Which accounting principle requires that bad debts expense be recognized in the same period as the sale?

Name: Which accounting principle requires that bad debts expense be recognized in the same period as the sale?
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Question

Quizplus · Accepted Answer

The matching principle requires that expenses be recognized in the same period as the related revenue. Bad debts expense is an expense related to credit sales, so it should be recognized in the same period as the sale in order to properly match the expense to the revenue.

Which Accounting Principle Requires That Bad Debts Expense Be Recognized