Question

Explain how you use the Allowance method and Percent-of-Sales Method to account for uncollectibles.
​

Answer 1

Answer:

When the allowance method is used to account for uncollectible accounts, Bad Debt Expense is debited when c. management estimates the amount of uncollectibles. Under the allowance method, the company will make estimates of the amount of bad debts incurred during the year.