Bad Debts Expense

Question 1

Fundamentals

Answer 1

Operating Expense, IS, Dr

Question 2

Methods to Account for Uncollectible Accounts

Answer 2

Direct write-off method: REcord bad debts expense when the company determines a particular account to be uncollectible.

Allowance Method: Dr. BDE, Cr. AforDA’s = to the est. of uncollectibles. As specific accts become uncollectible, Dr. AforDA’s and Cr. Accts Recievable