Which of the following is TRUE?
A) The allowance method requires a business to estimate bad debt expense.
B) The allowance method requires a business to record only actual bad debt expense.
C) The allowance method allows a business to choose between recording actual or estimated bad debt expense.
D) The allowance method does not relate to bad debts expense. It is a method used to prepare a bank reconciliation.
Correct Answer:
Verified
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