Bad Debt Expense is reported on the income statement as

Question

Quizplus · Accepted Answer

Bad Debt Expense is considered an operating expense because it is a cost associated with the normal operations of the business, specifically related to the credit extension and collection process. It is not part of cost of goods sold, and it does not affect gross profit since it is not a direct revenue-generating activity. It is also not a contra-revenue account since it is not directly related to revenue recognition.

Bad Debt Expense Is Reported on the Income Statement as