Asked by Michael Frank on May 21, 2024
Verified
Under the sales revenue approach,no bad debt expense is recorded when a specific account (known to be uncollectible)is written off.
Bad Debt Expense
The expense recognized when receivables are no longer collectible, reflecting estimated losses from extending credit.
- Comprehend the approaches to recording bad debt expense and their effects on accounting records.
Verified Answer
DC
Destiny CavinsMay 24, 2024
Final Answer :
True
Explanation :
Under the sales revenue approach, bad debt expense is recorded at the time of sale based on estimated uncollectible accounts. When a specific account is written off as uncollectible, there is no further impact on the bad debt expense since it has already been recorded.
Learning Objectives
- Comprehend the approaches to recording bad debt expense and their effects on accounting records.
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