Bad Debts or uncollectible accounts
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Which of the following methods of determining bad debt expense does not properly match expense against revenue?
oCharging bad debts with a percentage of sales under the allowance method.
oCharging bad debts with a percentage of accounts receivable under the allowance method.
oCharging bad debts with an amount derived from aging accounts receivable under the allowance method.
oCharging bad debts as accounts are written off as uncollectable.
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The solution explains the method which does not properly match expense against revenue.
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oCharging bad debts as accounts are written off as uncollectable.
In this case the ...
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