Asked by Melissa Gonzalez on Jun 21, 2024
Verified
When using the allowance method of accounting for uncollectible accounts,the entry to record the estimated bad debts expense is a debit to Bad Debts Expense and a credit to Allowance for Doubtful Accounts.
Allowance Method
An accounting technique used to account for bad debts by estimating uncollectable accounts at the end of each period.
Bad Debts Expense
An expense reported on the income statement, representing the amount of accounts receivable that is not expected to be collected.
- Acknowledge the importance and procedure of the allowance method in treating bad debts within accounting practices.
Verified Answer
LD
Leslie De La RosaJun 26, 2024
Final Answer :
True
Explanation :
This is the correct entry for the allowance method of accounting for uncollectible accounts.
Learning Objectives
- Acknowledge the importance and procedure of the allowance method in treating bad debts within accounting practices.
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