When Using the Allowance Method for Bad Debts, How Should

question 149

Multiple Choice

When using the allowance method for bad debts, how should bad debt expense be recorded?

• A) When a particular account is written off.
• B) Whenever the allowance for doubtful accounts has a debit balance.
• C) As an adjusting entry at the end of the accounting period.
• D) Whenever the allowance for doubtful accounts has a zero balance.

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