Earl Company uses the accrual method of accounting. Here is a reconciliation of Earl's allowance for bad debts for the current year. (950,000) 899,600 Beginning allowance for bad debts Actual write-offs of accounts receivable during the year Addition to allowance Ending allowance for bad debts 845,000 (895,400) Which of the following statements is true? Bad debt expense per books is $845,000, and the deduction for bad debts is $899,600. Bad debt expense per books and the deduction for bad debts is $895,400. Bad debt expense per books and the deduction for bad debts is $899,600. Bad debt expense per books is $899,600, and the deduction for bad debts is $845,000