The expense recognition principle,as applied to bad debts,requires:

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The expense recognition principle requires the use of the allowance method of accounting for bad debts. This method recognizes an estimated amount of bad debt expense in the period the related sales are made, rather than waiting until individual accounts are determined to be uncollectible and writing them off. This method is more conservative and matches expenses with revenues in the period they are incurred. Choices A, B, D, and E are incorrect because they do not follow the expense recognition principle for bad debts.

The Expense Recognition Principle,as Applied to Bad Debts,requires