Under the allowance method, why is Bad Debt Expense an estimate? Multiple Choice The revenue recognition principle requires sales on account be recorded when the amounts are collected. GAAP require the expense to be debited in the same period as the credit sale, which is before knowing who specifically will not pay. Bad Debt Expense is not an estimate. It is recorded when a customer's Account Receivable is deemed uncollectible. None of the above. A sale on account is recorded with... Multiple Choice a debit to Accounts Receivables and a credit to Sales Revenue a debit to Sales Revenue and a credit to Accounts Receivable a debit to Sales Revenue and a credit to Accounts Payable a debit to Accounts Payable and a credit to Sales Revenue 3 Using the allowance method, which is the correct adjusting entry to record bad debt expense? Multiple Choice Debit Bad Debt Expense and credit Accounts Receivable Debit Allowance for Doubtful Accounts and credit Bad Debt Expense Debit Bad Debt Expense and credit Allowance for Doubtful Accounts Debit Bad Debt Expense and credit Sales Revenue Accounts Receivable represent.... Multiple Choice amounts owed by a company to its suppliers cash sales made by a company over a period of time credit sales made by a company over a period of time amounts owed to a company by its customers