Which of the following statements concerning the estimation of bad debt expense using the percentage-of-credit-sales method is correct?
A) It produces the same results as an aging of accounts receivable.
B) It causes an adjustment to the allowance account based on the balance in that account immediately prior to the adjustment.
C) It is based on the net realizable value of the accounts receivable.
D) It emphasizes the matching of revenues and expenses on the income statement.
Correct Answer:
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