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When the allowance method is used to account for uncollectible accounts, bad debts expense is debited when:

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Answer:

After adjustment, the allowance for doubtful accounts has the effect of reducing accounts receivable to its estimated realizable value. When using the allowance method of accounting for uncollectible accounts, the entry to record the bad debts expense is a debit to Bad Debts Expense and a credit to Accounts Receivable.

Explanation: