Under the Allowance Method of Recording Bad Debt Expense, a Company

question 91

Multiple Choice

Under the allowance method of recording bad debt expense, a company records bad debts:

• A) Only at the time it writes off specific customer accounts known to be uncollectible
• B) At the end of each accounting period, on an estimated basis
• C) Both at the time it writes off specific customer accounts known to be uncollectible, and at the end of each accounting period
• D) Only when the allowance for doubtful accounts is reduced to zero

---

Definitions:

Sieve Elements

Specialized cells found in the phloem of vascular plants, involved in the transport of sugars and other nutrients from leaves to other parts of the plant.

Companion Cells

Specialized cells found in the phloem of plants that support the function of sieve tube elements.

Translocation

The process by which substances are transported inside a plant or the movement of chromosomes or segments of chromosomes to new positions during cell division.

Transpiration

The method through which water moves inside plants from the roots to tiny openings on the lower side of the leaves, where it transforms into vapor and gets emitted into the air.