Bad Debt Expense

Question

Sep 17, 2007, 10:00 AM

cbrennan

New Member

Join Date: Sep 2007

Posts: 2

Bad Debt Expense

We would like to change our bad debit expense from being an overhead expense account to a cost of sales expense account. Is this okay?

Answers

Sep 17, 2007, 11:18 PM	#2

CaptainForest

Finance & Accounting Expert

Join Date: Nov 2005

Location: Canada

Posts: 3,672

Yes. Change in policy is always acceptable.

Just make sure you aren’t changing from year to year just to impact your financial statements.

But assuming you have re-evaluated and feel this new method will better reflect your business, go for it.

Comments on this post

cbrennan agrees: Very helpful- not only did the question get answered but the answer addressed possible pitfalls where it could be erroneous. Thank you so much

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