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1 year ago

4)which of the following is correct when bad debt expense is recorded at year-end? b) net accounts receivable will decrease.

Business

1 answer:

fiasKO [112]1 year ago

5 0

Bad debt expense is an operating expense. An increase in operating expenses decreases income from operations.

When a receivable is no longer collectible as a result of a customer's inability to pay an outstanding debt due to bankruptcy or other financial issues, a bad debt expense is recorded. Companies that offer credit to their customers record bad debts as an allowance for doubtful accounts, also referred to as a provision for credit losses, on their balance sheet.

The basic idea behind bad debt expense is the same as that behind all accounting principles: it enables businesses to completely and accurately report their financial position. Almost every business will encounter a customer who is unable to pay at some point, and they will need to record a bad debt expense.

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larisa86 [58]

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<h3>What is market price?</h3>

Market value is another term for current price. It is the most recent price at which a share of stock or other security was traded. The current price serves as a baseline in an open market.

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