If a Company Uses the Allowance Method to Account for Bad

Multiple Choice

If a company uses the allowance method to account for bad debts, the company's owners' equity will decrease

A) at the end of the accounting period when an adjusting entry to estimate bad debts is recorded.
B) on the date a customer's account is determined to be uncollectible.
C) when the accounts receivable amount becomes past due.
D) on the date a customer's account is written off.