Why is the percentage-of-credit-sales method of accounting for bad debts referred to as an income statement approach,

Question:

Why is the percentage-of-credit-sales method of accounting for bad debts referred to as an income statement approach, whereas the percentage-of-receivables method is referred to as a approach?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...