Earl Company uses the accrual method of accounting. Here is a reconciliation of Earl's allowance for bad debts for the current year. 
Which of the following statements is true?
A) Bad debt expense per books is $845,000, and the deduction for bad debts is $899,600.
B) Bad debt expense per books is $899,600, and the deduction for bad debts is $845,000.
C) Bad debt expense per books and the deduction for bad debts is $899,600.
D) Bad debt expense per books and the deduction for bad debts is $895,400.
Correct Answer:
Verified
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