When the allowance method is used to account for uncollectible accounts. Bad Debts expense is debited when a sale is made an account becomes bad and is written off management estimates the amount of uncollectible. a customer's account becomes past due How is the gain (loss) on the sale of a plant asset calculated? Asset sale price - Asset purchase cost, Asset sale price - Asset book value Asset sale price - Total accumulated depreciation Asset sale price - Asset fair value in preparing a bank reconciliation. NSF checks are added to the balance per bank deducted from the balance per books. added to the balance per books deducted from the balance per bank. Cost of goods sold is computed from the following equation: beginning inventory - cost of goods purchased + ending inventory sales - cost of goods purchased + beginning inventory - ending inventory sales + gross profit - ending inventory + beginning inventory. beginning inventory + cost of goods purchased - ending inventory