Bad debt expense is reported in the income statement as

Name: Bad debt expense is reported in the income statement as
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Bad debt expense is considered an operating expense because it represents a cost of doing business (specifically, the cost of extending credit to customers who may not pay). It is not part of the cost of goods sold (A) or a revenue item (C). While bad debt may be considered unusual for some companies, it is generally not considered an unusual item (D) for financial reporting purposes.

Bad Debt Expense Is Reported in the Income Statement as