All of the following statements are true regarding bad debts expense except
A. When using the income statement method, we concentrate on the percentage of net credit sales.
B. When using the balance sheet method, the percentage of net credit sales is not considered.
C. Calculation of bad debts expense is required at least once a year when a company has receivables.
D. All of the above are correct.
Answer:D
All of the following statements are true regarding bad debts expense except
A. When using the income statement method, we concentrate on the percentage of net credit sales. B. When using the balance sheet method, the percentage of net credit sales is not considered. C. Calculation of bad debts expense is required at least once a year when a company has receivables. D. All of the above are correct.