The Account Allowance for Doubtful Accounts Is Necessary Because

Multiple Choice

The account Allowance for Doubtful Accounts is necessary because

A) when recording bad debts expense, it is not possible to know which specific accounts will default.
B) uncollectible accounts that are written off must be accumulated in a separate account.
C) a liability results when a credit sale is made.
D) management needs to accumulate all the credit losses over the years.