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2 January, 07:15

When the allowance method is used to account for uncollectible accounts, Bad Debts Expense is debited when A. a customer's account becomes past due. B. an account becomes bad and is written off. C. a sale is made. D. management estimates the amount of uncollectibles

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  1. 2 January, 07:21
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    Option D. management estimates the amount of uncollectibles

    Explanation:

    When the company estimates the bad debts, reflects it in the balance sheet through a Debit entry in the Bad Debt Expenses againts the asset account Allowance for Doubtful Accounts as a Credit.

    When the bad debt are confirm as uncollectible the loss is reflected in the Account Receivable as a Credit with the correspondent debit entry in the Allowance for Doubtful Accounts.
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Home » Business » When the allowance method is used to account for uncollectible accounts, Bad Debts Expense is debited when A. a customer's account becomes past due. B. an account becomes bad and is written off. C. a sale is made. D.
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