If a company uses the allowance method of accounting for bad debts, which one of the following statements is true?

a.It will record bad debts only when an account is determined to be uncollectible.

b.It will reduce the accounts receivable at the end of the accounting period for estimated uncollectible accounts.

c.It will report accounts receivable on the balance sheet at their net realizable value.

d.It violates the matching principle.