Under the allowance method of accounting for uncollectible accounts, Bad Debts Expense is debited

A) when a credit sale is past due.
B) at the end of each accounting period.
C) whenever a pre-determined amount of credit sales has been made.
D) when an account is determined to be uncollectible.

Allowance Method

An accounting technique used to estimate and account for potential uncollectible accounts receivable as an expense against current period income.

Bad Debts Expense

An expense recognized when it is judged that some accounts receivable cannot be collected, reflecting the cost of credit sales that will not turn into cash.