Which of the following is true about bad debt expense?
A) It should appear on the statement of financial position as a contra asset.
B) It should appear on the income statement as a contra revenue.
C) It should appear on the income statement as part of selling expenses.
D) It should not appear in the financial statements.

Question

Quizplus · Accepted Answer

Bad debt expense is reported on the income statement as part of operating expenses, often classified under selling, general, and administrative expenses.

Which of the Following Is True About Bad Debt Expense