1. How does the matching principle apply when recognizing bad-debt expense, and how does the allowance method apply the matching principle?

2. What are the accounting entries made when writing off bad debts? Give the account debited and the account credited.

3. What is the inherent problem when the direct write-off method is used and a credit sale made in one period is found to be uncollectible in another period?

4. What is the term for the value of accounts receivable we expect to be able to collect?*****

5. Why is an additional expense not recorded when we learn that an account is, indeed, not going to be collectible?