Bad debt expense is normally reported on the income statement as a(n)

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Bad debt expense is a type of operating expense because it is directly related to the company's primary operations of sales and revenue generation. It represents the amount of money that the company estimates it will not be able to collect from customers who have been granted credit. This expense is reported separately on the income statement, typically as a percentage of sales or as a lump sum amount.

Bad Debt Expense Is Normally Reported on the Income Statement