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Which statement about using the aging of accounts receivable to estimate bad debt expense is correct? A. This method records an adjustment to the allowance
Which statement about using the aging of accounts receivable to estimate bad debt expense is correct?
A.
This method records an adjustment to the allowance account irrespective of the balance in that account, immediately prior to the adjustment.
B.
This method focuses on the income statement.
C.
This method has the same results as estimating the bad debt expense by using the percentage of credit sales.
D.
This method focuses on the balance sheet.
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