The journal entry to record bad debt expense is made during the year in which it is determined that a particular receivable is uncollectible,regardless of the year of sale.

Question

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The journal entry to record bad debt expense is typically made periodically based on estimates of potential uncollectible accounts (using the allowance method), not necessarily in the year a specific receivable is deemed uncollectible.

The Journal Entry to Record Bad Debt Expense Is Made