Why is the allowance method of recognizing bad debts used? a. It results in recognizing the expense
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Why is the allowance method of recognizing bad debts used?
a. It results in recognizing the expense of granting credit in the period in which the account is written off.
b. It results in matching expense with the revenue of the period in which the sale took place.
c. It results in recognizing the maximum amount of write-off in each period.
d. The allowance method cannot be justified and therefore is not allowed.
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Related Book For
Financial Accounting The Impact On Decision Makers
ISBN: 9780324655230
6th Edition
Authors: Gary A. Porter, Curtis L. Norton
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