The Grass is Greener Corporation provides $6,000 worth of lawn care on account during the month. Experience suggests that about 2% of net credit sales will not be paid. According to the revenue recognition principle and the expense recognition principle, the company should:

Multiple Choice

all of the answers are acceptable.

record an estimate of bad debt expense in the same period as the lawn care is provided.

increase the value of its liabilities with an adjustment.

not report the sales revenue until it collects payment.