Multiple Select Question Select all that apply Bad Debt Expense ______. (Check all that apply.) Multiple select question. should

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Multiple Select Question Select all that apply Bad Debt Expense ______. (Check all that apply.) Multiple select question. should

exceed the revenue generated from incurring the cost is a cost of extending credit to customers is based on actual events and does not require estimation is an estimate

Business

1 answer:

Olegator [25] · Answer 1 · 2023-06-05T16:13:14+03:00

Bad Debt Expense is a cost of extending credit to customers is based on actual events and does not require estimation is an estimate.

When a receivable is no longer recoverable as a result of a customer's inability to pay an outstanding debt owing to bankruptcy or other financial issues, a bad debt expense is recorded.
Big Store stops paying its debts and fails to reimburse Company XYZ for goods valued at $100,000. Company labels the $100,000 as a bad debt because it has little faith that Big Store will ever make good on its obligations.
When a customer's repayment of previously granted credit is thought to be uncollectible and is therefore recorded as a charge off, a business incurs a bad debt expense.
Bad debt charges are categorized as operating costs and are typically listed under selling, general, and administrative costs on your company's income statement.

Thus this is the answer.

To learn more about Bad debt expense, refer:brainly.com/question/24871617

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