Under the allowance method,Uncollectible Accounts Expense is recorded
A)for an estimated amount.
B)several times during the accounting period.
C)when an individual account is written off.
D)for a known amount.

Question

Quizplus · Accepted Answer

Under the allowance method, Uncollectible Accounts Expense is recorded for an estimated amount. This estimated amount is based on historical data, industry norms, and other relevant factors. The purpose of recording the expense is to recognize the potential of losing money due to uncollectible accounts and to match this expense with the revenue generated in the same period. The actual amount of uncollectible accounts may differ from the estimated amount, requiring adjustments to be made at the end of the accounting period.

Under the Allowance Method,Uncollectible Accounts Expense Is Recorded