In the case of a corporation that is not a financial institution, which of the following statements is correct with regard to the deduction for bad debts?

A$.$

A corporation is required to use the direct charge$-$off method rather than the reserve method.

B$.$

On approval from the IRS, a corporation may change its method from direct charge$-$off to reserve.

C$.$

If the reserve method was consistently used in prior years, the corporation may take a deduction for a reasonable addition to the reserve for bad debts.

D$.$

Either the reserve method or the direct charge$-$off method may be used, if the election is made in the corporation's first taxable year.