An entry to bad debt expense and allowance for doubtful accounts is generally made as an adjusting entry at year-end while actual losses may be written off throughout the year.

Question

Quizplus · Accepted Answer

This statement is true. The bad debt expense and allowance for doubtful accounts are estimated at year-end, but actual losses from specific accounts may occur throughout the year and can be written off as they happen.

An Entry to Bad Debt Expense and Allowance for Doubtful