1.When applying the percentage of credit sales method, bad debt expense is calculated as

(A)	desired allowance balance - current allowance balance.

(B)	gross accounts receivable - allowance for doubtful accounts.

(C)	historical percentage * net credit sales.

(D)5.04

2. Under bad debt accounting, when an account is written off

(A) assets decrease.

(B) net income decreases.

(C) expenses increase.

(D) total assets do not change.