Question: 1. Why is an uncollectible account recorded as an expense rather than a reduction in revenue?
2. When do businesses normally estimate the amount of their uncollectible accounts expense?
3. What two objectives will be accomplished by recording an estimated amount of uncollectible accounts expense?
4. Why is Allowance for Uncollectible Accounts called a contra account?
5. How is the book value of accounts receivable calculated?