1) Under the allowance method , a company must estimate the Bad debts expense at the end of the period. There are several methods that can be used to come up with the estimate. Question: What is the entry to record bad debts expense and how would you go about determining the amount to use for the estimate?

2) under the allowance method, We have to properly match the revenue and the expenses by estimating uncollectible accounts and record (debit) Bad Debts Expense/ (credit) allowance account in the period of the sale". Question: My question is how can a company go about estimating the uncollectible accounts to record in the same period of the sale?

3) there are three ways that companies use to estimate the bad debs expense or the uncollectable amounts to be recorded. To add, the first method is very simplistic and is known as the income statement approach because you are using credit sales and sales are reflected on the income statement. The other two methods are known as the balance sheet approach because you are using receivables which are reflected on the balance sheet. QUESTION; Which method do you feel will provide a more accurate result of the estimate for bad bad debts expense?

4) The justification for the usage of the allowance method as contrasted with the direct write-off method of accounting for bad debts is that under the allowance method the bad debt is deducted from the allowance account" To add , under the allowance method, the company must estimate the Bad Debts, expense . There are several ways to estimate Bad Debts expense. QUESTION: Which method do you feel will provide a more accurate result of the estimate for bad debts expense ?