You have just received audited financial statements from your client and notice that accounts receivable are listed as "accounts receivable (net)" on the balance sheet. Where do you look to determine the accounting method used in recognizing bad debts?

A) In the notes to the financial statements

B) In the statement of cash flows to determine the amount written off

C) The word "net" means the borrower is using the charge off or write off method

D) The income statement to determine how bad debts are expensed