Question

When the allowance method is used to account for uncollectible accounts, Bad Debts Expense is debited whena. a sale is made.b. an account becomes bad and is written off.c. management estimates the amount of uncollectibles.d. a customer's account becomes past due.

Answer 1

c. management estimates the amount of uncollectibles

Step-by-step explanation:

When the allowance method is used to account for uncollectible accounts, bad debts expense is debits when the management estimates the amount of uncollectibles, meaning the company will fail to collect the amount.