Question

Countryside Corporation provides $6,000 worth of lawn care on account during the month. Experience suggests that about 2% of net credit sales will not be collected. In conformity with the expense recognition principle, the company should:

Answer 1

The company should record an estimate of Bad Debt Expense in the same period as the lawn care is provided

What is bad debt?

Bad debts are debt which customers are unlikely to pay back. They are debts which are deemed to be irrecoverable.

Also, In line with the standard of the expense recognition principle, states that incomes are documented when earned and expenses are documented when consumed.

Learn more about bad debt here : https://brainly.com/question/15345588

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