To account for the non-cash nature of bad debt expense the increase in the Allowance for Doubtful Accounts should be deducted from net income in arriving at net cash flow from operating activit the increase in net accounts receivable should be deducted from net income in arriving at net cash from operating activities the increase in the Allowance for Doubtful Accounts should be added to net income in arriving at net cash flow from operating activities the increase in net accounts receivable should be added to net income in arriving at net cash from operating activities