Under the Allowance Method of Accounting for Bad Debts, Why

question 148

Multiple Choice

Under the allowance method of accounting for bad debts, why must uncollectible accounts receivable be estimated at the end of the accounting period?

• A)To allow the collection department to schedule work for the next accounting period.
• B)To determine the gross realizable value of accounts receivable.
• C)The IRS rules require the company to make the estimate.
• D)To match bad debt expense to the period in which the revenues were earned.

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A country in Northern Europe known for its comprehensive welfare system, high standard of living, and historical contributions to science, literature, and music.