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,when will the company's owners' equity decrease?

A) At the date a customer's account is written off
B) At the end of the accounting period when an adjustment for bad debts is recorded
C) At the date a customer's account is determined to be uncollectible
D) When the accounts receivable amount becomes past due