Under the Income-Statement Approach (Percent-Of-Sales Approach), the Entry to Accrue

Multiple Choice

Under the income-statement approach (percent-of-sales approach) , the entry to accrue bad-debt expense involves:

A) a debit to allowance for doubtful accounts and a credit to bad-debt expense.
B) a debit to bad-debt expense and a credit to allowance for doubtful accounts.
C) a debit to bad-debt expense and a credit to accounts receivable.
D) a debit to allowance for doubtful accounts and a credit to accounts receivable.