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    cbrennan's Avatar
    cbrennan Posts: 2, Reputation: 1
    New Member
     
    #1

    Sep 17, 2007, 11:00 AM
    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?
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member
     
    #2

    Sep 18, 2007, 12:18 AM
    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.

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