An Entry to Bad Debt Expense and Allowance for Doubtful

question 39

True/False

An entry to bad debt expense and allowance for doubtful accounts is generally made as an adjusting entry at year-end while actual losses may be written off throughout the year.

---

Definitions:

Statute of Frauds

Legal regulation stipulating that certain contracts must be written and signed to be legally enforceable, including agreements related to real estate, marriage, and debts.

Writing Requirement

The writing requirement refers to a legal principle that certain agreements or contracts must be in written form and signed by the parties involved to be legally enforceable.

Statute of Frauds

A legal principle requiring certain contracts to be in writing and signed by the party to be charged, to be enforceable.

Executory Contracts

Contracts under which both parties have obligations that are not yet fulfilled.