MUULIVE - MIST The journal entry to record a credit card sale using a nonbank credit card (for example, Canadian Tire or Sears) includes a debit to the Sales account. Bank Charges Expense account. Accounts Receivable account. Cash account. Question 2 (1 point) The account Allowance for Doubtful Accounts is necessary because when recording bad debts expense, it is not possible to know which specific accounts will not be paid. a liability results when a credit sale is made. management needs to accumulate all the credit losses over the years uncollectible accounts that are written off must be accumulated in a separate account. Question 3 (1 point) The account Allowance for Doubtful Accounts is classified as a(n) contra account to Bad Debts Expense. expense. liability. contra account to Accounts Receivable. Question 4 (1 point) Under the allowance method for uncollectible accounts, Bad Debts Expense is recorded for an amount that the company estimates it will not collect. when the amount of loss is known. when an individual account is written off. several times during the accounting period