QUESTION 8 Match the following terms to the correct phrase Bad debt expense "plugged" by estimating allowance for uncollectible accounts. Grouping accounts receivable depending on the length of time outstanding B. Accounts receivable aging Reduces the amount paid by a credit customer if paid within a specified C Sales discount. A Balance Sheet approach " time - When merchandise is returned for credit. - An example of a restriction on cash Buyer assumes the risk of uncollectibility Bad debt expense is recorded when receivables are written off D. Sales return E. Compensating balance F. Without recourse. G. Direct write-off method. H Income Statement approach. 1. Pledging J. Allowance method. Bad debt expense is a % of credit sales. Using a receivable as collateral for a loan. Reduces the carrying value of accounts receivable without knowing which " specific customer accounts are bad debts