Bad Debts Expense is recorded in the year the sale was earned when using the income statement approach.

Name: Bad Debts Expense is recorded in the year the sale was earned when using the income statement approach.
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The income statement approach for bad debts expense involves estimating uncollectible accounts at the end of each period based on historical data and current conditions, and it is recorded in the same period the sales are recognized to match revenues with expenses.

Bad Debts Expense Is Recorded in the Year the Sale